Oct 27 (Reuters) – Cipla, India’s third-largest drugmaker by revenue, missed second-quarter profit estimates on Tuesday, as muted sales of generic Revlimid and stiff competition weighed on its US business.
The company’s consolidated net profit fell to 8.78 billion rupees ($92.2 million) in the quarter ended September 30, from 13.51 billion rupees a year ago.
Analysts, on average, had expected profit to fall to 9.42 billion rupees, according to data compiled by LSEG.
Cipla is facing mounting pressure in its key US market as sales of generic Revlimid – Bristol-Myer Squibb’s blood cancer drug – continue to taper amid rising competition, increasing its dependence on India where sustained growth in chronic therapies and newer launches are helping offset the drag.
The company is also banking on obesity drug, Yurpeak, to support growth as weakness in the US business weighs on overall momentum. Yurpeak is Cipla’s brand of Eli Lilly’s tirzepatide, which it sells in India under a partnership with Lilly.Revenue from its India business rose 12%, while North America revenue decreased 19% during the quarter.
Revenue from operations fell 2.4% to 74.04 billion rupees during the quarter, partly due to a reclassification from April 1, 2026, that now presents certain marketing and promotional expenses as a reduction from revenue rather than under other expenses, with no impact on profit or cash flows.
India and North America together contribute about two-thirds of Cipla’s revenue.
(Reporting by Kashish Tandon in Bengaluru; Editing by Jochelle Mendonca)
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