New Covid-19 drugs provide additional fuel as Cipla fires on all cylinders

Firm domestic sales and positive outlook in the US point to robust earnings

Cipla’s stock surged nearly 8 per cent on Friday, following the recall of Albuterol — a respiratory product by its competitor Perrigo, in the US — over concerns that some units may not dispense properly because of clogging issues. 

This move is expected to benefit both Cipla and Lupin. Cipla is estimated to gain additional $20 million sales during September-December 2020 following the recall by Perrigo say analysts at a foreign brokerage. Also there could be more gains beyond the period as company gains market share and could lead to 4-6 per cent earnings upside feel analysts.Even if one goes