Cipla Share Price Snaps Two-Day Fall To Post Best Session Since July 2023—Here's Why

Cipla Ltd.'s share price rebounded strongly from a two-day fall on Thursday to post the best single-day gains since July 2023. The strong recovery came as the US Food and Drug Administration concluded inspection at its Goa facility with 'Voluntary Action Indicated', which paved the way for Abraxane generic launch.

Citi Research said in a report that pancreatic cancer treatment drug Abraxane's approval is contingent upon Goa unit clearance.

Obtaining regulator's approval for its compliance had been a challenge for Cipla since 2019. Hence, the VAI status is a positive development for the pharma company, especially at a time when it's facing supply challenge in Lanreotide, and competitive challenge in Albuterol, Nuvama said in a report on Thursday afternoon.

Now, the anticipated launch of Abraxane generic will present estimated revenue opportunity of $120 million for Cipla, Nuvama said. The brokerage retained 'Hold' rating and hiked the target price to Rs 1,601 from Rs 1,593 apiece. The current target price implied 12.88% upside from Wednesday's closing price.

Cipla's share price had declined for the past two days as its earnings for July–September failed to impress investors despite meeting estimates. The stock hit over a five-month low on Wednesday after analysts and brokerages cut its target price on concerns over weaker-than-expected performance of domestic business and challenges in its key products.

In the last two days, Cipla lost over 4% of its share value. Recovering the loss, it jumped 10% on Thursday so far.