Cipla an outlier among pharma majors

Healthy outlook on strong margins, niche product launches and traction in key regulatory markets

The June quarter (Q1) was a forgettable one for Indian pharma majors, as they battled pricing pressures in the US as well as lower sales here after the introduction of the goods and services tax (GST). These two markets account for over 75 per cent of the consolidated sales for most top-tier companies. Given the muted show, brokerages downgraded net profit estimates for most generic majors by 15-40 per cent, barring Cipla. In fact, Cipla’s earnings were upgraded in the range of 4 to 16 per cent for the next two financial years. So, what makes it stand out in