Cipla surpasses Q4 profit expectations amid robust US demand

Cipla Q4 earnings: Cipla, the country’s third-largest generic drugmaker in terms of sales, exceeded fourth-quarter profit forecasts on Friday, on the back of by robust demand for its products in key US markets.

The company reported 78.5 per cent surge in net profit to Rs 939 crore for the quarter ending March 31, surpassing analysts' expectations of Rs 811 crore according to LSEG data.

Cipla's total revenue witnessed a 7.4 per cent increase to Rs 6,163 crore, with its North American generics business, the largest segment, experiencing a remarkable 12 per cent growth. Domestic sales also saw a 7 per cent rise during the quarter.

The company's US sales have been consistently bolstered by strong demand for its generic version of Revlimid, a blockbuster cancer drug developed by Bristol-Myers Squibb. Cipla introduced its version of the drug in September 2022.

Other generic drugmakers including Dr Reddy's, Sun Pharma, and Zydus Lifesciences have also benefited from the growing sales of their respective generic versions of Revlimid in the US.

Dr Reddy's surpassed fourth-quarter profit estimates earlier in the week, driven by robust US sales of Lenalidomide, its generic version of Revlimid.

Meanwhile, Bristol Myers is encountering challenges from generic competition for Revlimid, which was previously its top-selling drug.

(With Reuters inputs)