Citi has reiterated a ‘Buy’ rating on Cipla Ltd, assigning a target price of ₹1,800, implying an upside of 21.5% from the current market price of ₹1,481.00 (as of latest close).
The brokerage highlighted growing competitive pressure in Abraxane generic, one of Cipla’s key focus products for FY26–27E. The latest entrant is Shuangcheng, a China-based pharmaceutical company, which becomes the third interchangeable version in the segment after Cipla and Sandoz (partnered with another Chinese firm). In total, there are now five generic versions, including 505(b)(2) approvals, making the market increasingly crowded.
Citi expects Abraxane to contribute ~$40–50 million in annual U.S. sales for Cipla in the coming fiscal years. However, it cautioned that the intensifying competition could pose downside risk to these projections.
Despite these headwinds, Citi remains bullish on Cipla’s broader fundamentals and growth outlook, maintaining its positive stance.
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