Cipla’s decent second quarter performance gives confidence in future outlook

0

NEW DELHI : Cipla Ltd performed decently in the second quarter despite declining sales of covid-19 drugs. Business growth in India of 16% year-on-year (year-on-year) provided positive impetus. Adjusted for the contribution of the covid-19 product, growth was 23% according to analysts. Respiratory, urology, anti-infective and cardiology portfolios aided the company’s sales in India.

Sales in South Africa also maintained strong growth momentum. South Africa, Sub-Saharan Africa and Cipla Global Access (SAGA) grew 8% year-on-year in US dollars.

India and SAGA’s performance saw the company appear in the second quarter, as US sales revenue, while impressive at $ 142 million, marked only marginal growth. . The sustained momentum in commodities helped offset price erosion in the rest of the portfolio.

The company’s consolidated sales grew 10% year-over-year, while ebitda and net profit increased 4% and 7% respectively. Nomura Research analysts said “the second quarter of fiscal 22 results exceeded our expectations.” .

Analysts believe the company’s future prospects are bright. The company’s chronic strong portfolio in Indian affairs is already developing well, while a rebound in the acute segment is expected to support growth. The company also recently announced a license for Eli Lilly’s brands of insulin Humalog and Trulicity. These products have annualized revenues of ??230 crore according to analysts.

In the United States, sales of generic albuterol inhalers are growing well. The company has gained more than 15% market share in the US market. The US albuterol market remains stable in terms of demand and price, analysts say, and that’s a big bright spot. Strong growth in sales of albuterol inhalers, coupled with new launches, offset pricing pressure in the core business in the United States. Meanwhile, analysts believe that greater clarity on the timing of launching larger products in the US market should improve the earnings outlook.

In view of the good line-up of major launches during FY23 (generics of Revlimid, Abraxane and potentially Advair), analysts at HSBC Securities and Capital Markets (India) Pvt. Ltd, expects a significant acceleration in sales in the United States from S2FY23. They expect its US sales to be in the $ 140 million range. ??150 million range for the remaining quarters of FY22, supported by increased sales of respiratory products and improved channel reach “

Cipla stock was trading above 1% in morning trading on Wednesday.

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

Leave A Reply

Your email address will not be published.