Cipla share price: Despite a deal with Eli Lily to sell its blockbuster weight-loss drug under a separate brand in the country, Cipla shares witnessed selling pressure in trade on Friday, October 24.
Analysts believe that while the deal is positive, Cipla’s share price is unlikely to see a fresh run-up, given the rise it has already seen in the anticipation of the deal over the past few sessions.
Cipla’s share price extended its fall in trade today, following a 1% slide on Thursday. Before that, the pharma stock had gained for five straight sessions, clocking an over 7.5% gain.
Cipla-Eli Lily deal impact
Under the agreement, Cipla will distribute and promote the drug manufactured by Lilly under a second brand named ‘Yurpeak’ in India. Lilly would supply the drug to Cipla, which would then be sold by the company at a price equivalent to Mounjaro.
The medication will be available in six dose strengths — 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg and 15 mg.
According to Elara Capital analysts, this is an innovative move by both Eli Lilly & Cipla and adds additional dimension to the GLP-1 agonist (class of medication used to treat Type 2 diabetes and obesity) market in India, which could be a $1 billion-plus market in the next four years.
The deal, as per the brokerage’s calculations, could add ~3% to Cipla’s domestic revenue and ~1.5% to its overall EBITDA in the next three years.
Nuvama Research, too, opined that the Indian GLP-1 market is lucrative for most players and is currently a nascent, undertapped market. “We argue Cipla by dint of its field force and robust distribution network, can clock FY26E/27E sales of INR 3.6bn/3.7bn, apart from gaining a lead in the semaglutide opportunity,” it added.
Cipla share price & target
The stock has moved up 5% in the past five trading sessions in anticipation of such a deal, said Elara and as a result, it does not see further upside to the Cipla stock price from these levels because of the deal.
It retained an ‘accumulate’ rating and a target price of ₹1,670 on the stock. “We keep our estimates and target price unchanged at this stage; we will revisit after Q2 earnings scheduled for 30 October 2025,” said Elara analysts.
Nuvama, on the other hand, lifted its revenue/PAT by 1%/1% for FY26E and by 4%/3% for FY27E. It also raised the target price for Cipla to ₹1,725 ( from earlier ₹1,651) while retaining a ‘hold’ rating.
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