Cipla shares zoom 10% after USFDA's inspection at firm's Goa plant; here is what you need to know

As per USFDA, voluntary action indicated (VAI) means objectionable conditions or practices were found, but the agency is not prepared to take or recommend any administrative or regulatory action. 

In the case of Cipla, the classification paves the way for key niche launches like the Abraxane generic, as per a report by CNBC-TV18. 

Abraxane is a paclitaxel-based chemotherapy drug used to treat cancer with a market size of over $700 million. Currently, only one generic player, Sandoz, has received approval in October 2024.

Brokerage firm Citi said that the generic Abraxane is a key product from Cipla's Goa facility.

"With this clearance, Citi said that there is a possibility that the generic Abraxane can be launched in the current financial year itself, compared to earlier expectations of a delay until the financial year 2026-22027," the report added.

Drug major Cipla reported a 17% increase in consolidated net profit to ₹1,303 crore for the second quarter ended September 2024, driven by robust sales across markets.

The company had reported a net profit of ₹1,115 crore in the July-September quarter of the last fiscal.

Its total income from operations rose to ₹7,051 crore in the second quarter compared to ₹6,490 crore in the year-ago period, Cipla said in a regulatory filing.

The company's 'One India' business was impacted during the quarter due to a changed seasonal pattern. However, key chronic therapies in the branded prescription business continued to grow faster than the market, he added.

The company's consumer health business grew at a strong 21% year-on-year.