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  1. Cipla share price in focus as company's subsidiary receives two observations from USFDA; all you need to know

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Cipla share price in focus as company's subsidiary receives two observations from USFDA; all you need to know

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2 min read | Updated on February 21, 2025, 09:17 IST

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SUMMARY

Cipla, in its regulatory filing on Thursday, said that the United States Food and Drugs Administration (‘USFDA’) conducted a current Good Manufacturing Practices (‘cGMP’) inspection at the analytical testing facility of Sitec Labs, the wholly owned subsidiary of Cipla (‘Sitec’) located in Mahape, Navi Mumbai, from February 18 to 20, 2025.

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 While India is the largest supplier of generic drugs globally, accounting for one in five generic drugs sold worldwide, the nation ranks 11th in terms of export value. | Image: Shutterstock.

While India is the largest supplier of generic drugs globally, accounting for one in five generic drugs sold worldwide, the nation ranks 11th in terms of export value. | Image: Shutterstock.

Cipla share price: Shares of Cipla Ltd, the pharma major, will be on investors' radar on Friday, February 21, as the company, in its regulatory filing on Thursday, said that the United States Food and Drugs Administration (‘USFDA’) conducted a current Good Manufacturing Practices (‘cGMP’) inspection at the analytical testing facility of Sitec Labs, the wholly owned subsidiary of Cipla (‘Sitec’) located in Mahape, Navi Mumbai, from February 18 to 20, 2025.

On conclusion of the inspection, Sitec received two observations in Form 483. The company will work closely with the USFDA and remains committed to address these observations comprehensively within stipulated time, the filing added.

For the December 2024 quarter (Q3 FY25), Cipla said its consolidated net profit increased by 48.73% to ₹1,570.51 crore. The company had reported a net profit of ₹1,055.9 crore in the October-December period of last fiscal.

Revenue from operations rose to ₹7,072.97 crore as against ₹6,603.81 crore in the year-ago period.

"In Q3FY25, we delivered growth across all our various geographies, despite a supply challenge in the US," Cipla MD and Global CEO Umang Vohra said.

The company recorded a revenue growth of 8 per cent over last year with a highest-ever EBITDA margin of 28.1 per cent, driven by mix and other operational efficiencies, Vohra added.

"Our One-India business grew at a healthy 10% year-on-year. Key therapies in the branded prescription business continued to outpace the market growth; the trade generics business growth trajectory is back on track, and anchor brands of the consumer health business maintained a leadership position," Vohra said.

With positive traction in our differentiated assets, the US business posted a revenue of USD 226 million, he stated. In South Africa, the drug maker recorded a solid growth of 21% year on year in local currency terms, Vohra said. Emerging markets and Europe delivered a substantial revenue growth of 20% year on year on the back of a deep market focus strategy, he added.

"Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in the future pipeline, and focusing on resolutions on the regulatory front," Vohra said.

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