Citi has maintained its “Buy” rating on Cipla, with a target price of ₹1,870. With the current market price at ₹1,623.90, this implies an upside potential of approximately 15.1%.
The brokerage noted that a China-based pharmaceutical company has received approval for Paclitaxel, a generic version of Bristol-Myers Squibb’s Abraxane. The Chinese product is the first interchangeable version, expected to capture a significant share of the market and lead to a decline in prices. Meanwhile, Cipla’s own generic version of the drug has been delayed due to a warning letter at its Goa facility.
Citi also highlighted that any further delays in resolving issues at the Goa facility could significantly diminish Cipla’s opportunity with Abraxane, which is expected to contribute 6-7% to the company’s FY26-27 EPS excluding Revlimid.
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