Cipla beats Q1 profit view on robust demand
Written By : Ruchika Sharma
Medically Reviewed By : Dr. Kamal Kant Kohli
Published On 2024-07-27 09:37 GMT | Update On 2024-07-27 09:37 GMT
Advertisement
Hyderabad: Drugmaker, Cipla, has exceeded profit expectations for the first quarter of the fiscal year, driven by a significant increase in sales in its North American market. This strong performance has propelled Cipla's shares to an all-time high.
In its latest financial report, Cipla announced an 18.3% increase in consolidated net profit to 11.78 billion rupees ($140.8 million) for the quarter ending June 30. This figure surpasses analysts' predictions of 11.10 billion rupees, according to data from LSEG.
Cipla's shares jumped 6.7 per cent to a record high of 1,600 rupees after the results.
Sales in North America grew 13 per cent during the quarter, primarily driven by Cipla's respiratory drug Albuterol and cancer treatment drug Lanreotide.
"Cipla's rising market share for Lanreotide and Albuterol have led the U.S. revenue to beat our estimates," said Shrikant Akolkar, an analyst at Nuvama Institutional Equities.
North America and India make up around three-fourths of the company's revenue.
Its overall revenue rose 7 per cent, but fell short of analysts' expectations of a nearly 8 per cent increase, mainly due to changes in the distribution model of its domestic trade generics business.
However, growth in Cipla's India business should return in the near term as the transition of its trade generics business to a new distribution model is now over, the company said.
Read also: IT Department sends Rs 773 crore demand notice to Cipla
Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .
Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.
NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.