Shares of Cipla Ltd dropped over 3% after a temporary halt in production of its key US drug, Lanreotide, due to quality issues at its European supplier.
Lanreotide is one of Cipla’s top three US revenue-generating products, and the disruption has raised investor concerns. Brokerages including Morgan Stanley and Nuvama cut target prices, citing risks to FY27 earnings from the supply pause, rising competition, and loss of exclusivity on other drugs.
Cipla expects resupply in the first half of FY27, creating near-term uncertainty for its financial outlook.