New Delhi : Cipla Limited did well in the second quarter despite the decline in the sales of Kovid-19 drugs. India trade growth of 16% y-o-y (y-o-y) provided positive momentum. Adjusted for Covid-19 product contributions, growth came in at 23%, according to analysts. Respiratory, Urology, Anti-Infective and Cardiology portfolio helped the company in India sales.
Sales in South Africa also maintained a steady growth momentum. South Africa, Sub-Saharan Africa and Cipla Global Access (SAGA) rose 8% in US dollar terms.
Both India and SAGA performance pulled off the company’s Q2 show as US sales revenue, though impressive at $142 million, marked only modest growth. The steady pace in core products was able to offset the decline in prices in the rest of the portfolio.
The company’s consolidated sales grew 10% annually while EBITDA and net profit grew by 4% and 7%, respectively. Analysts at Nomura Research said that “Q2FY22 results came in ahead of our expectations. Sales / EBITDA / net profit were 9% / 13% / 11% higher than their estimate. EBITDA means earnings before interest, tax, depreciation and amortization Is. .
Analysts believe the company’s future prospects hold promise. The company’s strong old portfolio in the India business is already growing well, while the rebound in the acute segment should support growth. The company also recently announced the licensing of insulin brands Humalog and Trulicity from Eli Lilly. The annual revenue of these products is ₹230 crores according to analysts.
Generic sales of albuterol inhaler in the US are growing well. The company has achieved over 15% market share in the US market. Analysts say the US albuterol market remains stable in terms of demand and price, which is a big positive sign. Good growth in sales of albuterol inhaler, along with new launches, is taking care of pricing pressure in the US base business. Meanwhile, analysts believe that the earnings outlook is likely to improve with increased clarity on launch timelines for larger products in the US market.
Looking at a good line-up of launches in FY23 (generics of Revlimid, Abraxane and likely Advair), analysts at HSBC Securities and Capital Markets (India) Pvt. Ltd, expect US sales to increase significantly from H2FY23. They expect it to have US sales for $140 million- ₹150 million range for the remaining quarters of FY12, supported by the scale of respiratory sales and improved reach across channels”
Cipla’s stock was trading more than 1 per cent in the morning trade on Wednesday.
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