Does US nod for key cancer drug make Cipla shares attractive?

Cipla Ltd's shares have surged 6% since last week when it announced the final approval from the US Food and Drug Administration for its generic version of Bristol Myers Squibb's Abraxane, a cancer drug.

- Dipti Sharma

Cipla Ltd's shares have surged 6% since last week when it announced the final approval from the US Food and Drug Administration for its generic version of Bristol Myers Squibb's Abraxane, a cancer drug. Does the approval to sell the much-awaited product in the US make Cipla a compelling buy, especially when Trump's tariffs loom?

"One product approval by itself doesn't suddenly make a company more attractive," said Prashant Nair, lead analyst for pharma and healthcare at Ambit Capital. "Earlier-than-expected approval for Abraxane is positive, but tariffs will have a bearing on Cipla."

The extent of the impact of tariffs would depend on the quantum of the levy, the company's efforts to scale up supplies from its US plant, and the ability to pass on the tariff to customers, Nair noted.