Next US fix could stanch Cipla's Revlimid bleed

Generics pipeline starts to pulse as Advair, Symbicort, and Abraxane prepare to hit the vein

- RAM PRASAD SAHU

Cipla, the country's third-largest drugmaker by market value, was the top gainer on the Nifty 50 on Friday, rising over 3 per cent. While the April-June quarter (Q1) results for 2025-26 (FY26) came in ahead of estimates, it was the upbeat guidance for the US market that drove sentiment.

Ahead of the quarter, most brokerages had expected weakness in the US business and pressure on margins. But those concerns were put to rest by the launch slate, margin performance in Q1, and the FY26 guidance.

Investor focus remained on the US operations, especially the pricing pressure on the generic version of cancer drug Revlimid and Cipla's ability to sustain its revenue trajectory to offset the loss.

US sales in Q1 dropped 7 per cent year-on-year (Y-o-Y) due to competitive intensity in Revlimid generics. Motilal Oswal Research noted this was the third straight Y-o-Y decline in the segment. However, Cipla managed to cushion the impact through higher volumes and market share gains in key respiratory products, such as the generic version of albuterol, where it holds a 19 per cent share, and lanreotide (used to treat acromegaly), with a 21 per cent share.