Limited product launches, tepid sales in US dent Cipla's Dec quarter show

Niche product launches are key triggers for North American market

Cipla’s lower-than-expected performance for the December quarter (third quarter, or Q3) disappointed investors. Its stock, which has already lost more than 7 per cent since mid-January, fell another 0.4 per cent on Wednesday, even as the broader markets ended on a bullish note.

While the Indian market, which contributes about 40 per cent to Cipla’s overall revenue, is now seeing normalised growth with rebound in trade generics segment following a restructuring of the business, it reported flat numbers on a sequential basis.

On a year-on-year (YoY) basis, however, domestic sales grew 13 per cent, led by 14 per cent growth