Brokerage firm Investec has kept a bullish stance on drugmaker Cipla, banked on expectations of mid-teens growth in the India pharma market, and easing regulatory challenges at its Goa plant.
The brokerage remains optimistic of Cipla achieving 12-13 percent on-year growth in sales within the Indian pharma market. Alongside that, Investec also sees a classification from the US Food and Drug Administration coming its way for Cipla's Goa plant in the next couple of months, hopefully clearing a major regulatory roadblock for the company.
The USFDA had previously issued six observations for Cipla's Goa facility back in June. However, a clearance of the unit will open the way for the filing and manufacturing of pancreatic cancer drug, Abraxane, which was supposed to be manufactured at Cipla's Goa plant. Abraxane is a key drug in Cipla's pipeline which got delayed to FY26 due to regulatory challenges at the Goa plant.
Aside from this, Investec also highlighted the huge opportunity that Cipla has in the GLP-1 play (Glucagon-like-peptide, a hormone that helps regulate blood sugar and energy intake).
Investec remains optimistic about Cipla's joint venture with Kemwell Biopharma, which currently has two products in the development pipeline. In January, Cipla partnered with Kemwell Biopharma and Manipal Education & Medical Group to establish a joint venture in the US aimed at developing and commercializing novel cell therapy products addressing significant unmet medical needs.
Rounding all these triggers, Investec chose to retain its 'buy' call on Cipla with a price target of Rs 1,900, implying a 15 percent upside potential from the previous closing price.
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