Cipla slips 5%, hits nine-month low; why pharma stock under pressure?

In the past seven trading days, the stock price of Cipla has slipped 11 per cent from ₹1,530.25 hit on January 1, 2026.

Cipla share price today

 

Share price of Cipla hit a 9-month low at ₹1,367.80, falling 5 per cent on the BSE in Friday’s intra-day trade after the pharmaceutical company temporarily paused the production of key drug Lanreotide. 

 

The stock of the drug company was quoting at its lowest level since April 2025. It had hit a 52-week low of ₹1,310.05 on April 7, 2025. The stock has corrected 18 per cent from its 52-week high of ₹1,672.20 touched on October 23, 2025.

 

At 09:25 AM; Cipla was quoting 3 per cent lower at ₹1,388.95, as compared to 0.28 per cent rise in the BSE Sensex.

 

 

 

Why is Cipla's stock price under pressure on Friday?

 

Cipla has reported about a temporary disruption in the supply of Lanreotide Injection in the US following the United States Food and Drug Administration (USFDA) observations at Pharmathen’s manufacturing facility in Greece. The inspection, conducted in November 2025, resulted in nine observations under Form 483, prompting a pause in production to support remediation efforts. The company expects resupply to resume in the first half of FY27, with limited availability until manufacturing restarts and quality clearances are secured.

 

Pharmathen is the manufacturer and exclusive supplier of Lanreotide Injection to Cipla USA Inc., a wholly-owned subsidiary of the company in the US. This product is among the company’s top three products in the US market, Cipla said in an exchange filing.

 

The USFDA conducted an inspection at the Pharmathen’s Rodopi, Greece manufacturing facility, from November 10, 2025 to November 21, 2025 and issued 9 inspectional observations in Form 483. The redacted version of Form 483 was made public on January 7, 2026, following which media reports were widely circulated across mainstream platforms, resulting in material price movement in the company’s share price, Cipla said.

 

In the past seven trading days, the stock price of Cipla has slipped 11 per cent from a level of ₹1,530.25 on January 1, 2026.

 

The company further said, until manufacturing restarts, the product will remain in limited supply, subject to quality clearance. The company will closely monitor supply levels and is fully committed to restoring stable, reliable supply of Lanreotide expeditiously, it added.

 

Lanreotide is one of the important products for Cipla (among top three) for the US basket and commands a market share of 22 per cent. The decision to halt the production for a few quarters may lead to revenue and EBITDA loss, ICICI Securities said in a note. As per brokerage firm’s estimates, the product is expected to contribute 5-7 per cent to overall revenues and 8-9 per cent to the EBITDA for FY27.  ======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.