Why Did Cipla Share Price Crash by 5% Today? Check the Reason

SYNOPSIS: Cipla flagged a temporary supply disruption for its key US drug Lanreotide after USFDA observations at Pharmathen’s Greece facility, with production paused and resupply expected in H1 FY27.

During Friday’s trading session, shares of a global pharmaceutical company with a strong focus on complex generics and sustainable growth, and ranked as India’s third-largest pharma player, slumped around 5 percent on the stock exchanges. What led to the sharp fall? Here’s a closer look.

At 11:48 a.m., shares of Cipla Limited were trading in the red at Rs. 1,400.8 on BSE, down by around 2.4 percent, compared to its previous closing price of Rs. 1,434.6, with a market cap of Rs. 1.13 lakh crores. The stock has delivered negative returns of around 3 percent in one year, and has fallen by over 6 percent in the last one month.

What’s the News

As per its latest regulatory disclosure, Cipla Limited informed that the US Food and Drug Administration (FDA) conducted an inspection at Pharmathen’s manufacturing facility in Rodopi, Greece, between 10th November and 21st November 2025. Following the inspection, the regulator issued 9 observations under Form 483.

Pharmathen is the contract manufacturer and exclusive supplier of Lanreotide Injection to Cipla USA Inc., Cipla’s wholly owned US subsidiary. Lanreotide is among Cipla’s top three revenue-generating products in the US market.

A redacted version of the Form 483 was made public on 7th January 2026, triggering widespread media coverage. This disclosure led to heightened investor attention and resulted in notable movement in Cipla’s share price.

After internal assessment and discussions with Pharmathen, Cipla USA Inc. was informed that manufacturing at the facility has been temporarily halted to facilitate remediation measures. The company expects supplies of Lanreotide to resume in the first half of FY27, subject to regulatory clearance.

Until production restarts, Lanreotide will remain in constrained supply. Cipla stated that it is closely monitoring supply levels and remains focused on restoring a stable and reliable supply at the earliest.

Financials & More

Cipla reported a marginal growth in revenue from operations, experiencing a year-on-year increase of around 8 percent, from Rs. 7,051 crores in Q2 FY25 to Rs. 7,589 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 1,305 crores to Rs. 1,353 crores, representing a rise of just about 4 percent YoY. The company will announce financial results for Q3 FY26 on 23rd January 2026.

During the quarter, Cipla’s One India business recorded 7 percent YoY growth, supported by an improved chronic portfolio mix, which increased to 61.8 percent. R&D investments amounted to Rs. 539 crore, representing 7.1 percent of sales.

In North America, quarterly revenue stood at $233 million, driven by continued traction in differentiated products. Further, the One Africa region maintained its growth trajectory, delivering 5 percent YoY revenue growth in USD terms, with the prescription business ranking 2nd in the market. Emerging Markets & Europe posted a strong performance, registering 15 percent YoY revenue growth in USD terms.

Cipla Limited is engaged in the business of manufacturing, developing, and marketing a wide range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs), with strengths in the respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments.

Its 46 manufacturing sites around the world produce 50+ dosage forms and 1,500+ products using advanced technology platforms to serve 80+ markets. Cipla is ranked the 3rd largest in pharma in India, 2nd largest in the pharma prescription market in South Africa, and 4th largest by prescription in the US Gx (Repulses + MDI) products.

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