Cipla’s shares fell sharply on Friday after a USFDA inspection forced a pause in production of one of its key drugs.
What triggered the drop?
The company said its exclusive partner, Pharmathen International of Greece, received nine Form 483 observations during a USFDA inspection of its Rodopi facility. Because of these findings, Pharmathen stopped making the Lanreotide injection, which is one of Cipla’s top three products in the U.S.
Supply concerns
With production halted, the drug will be in limited supply until the partner fixes the issues and gets clearance. Cipla expects the supply to resume in the first half of fiscal year 2026‑27.
Stock numbers
- Shares slid up to 4.6%, reaching an intraday low of Rs 1,367.8.
- Price‑to‑earnings (PE) ratio stands at 20.59.
- Price‑to‑book (PB) ratio is 3.58.
Technical picture
The 14‑day Relative Strength Index (RSI) is around 32, suggesting the stock is nearing oversold territory. The price is also below all eight of its key simple moving averages, pointing to continued downside pressure.
Bottom line
Investors should keep an eye on updates about the drug’s supply and any further regulatory actions, as they could influence Cipla’s share price.
Disclaimer
Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.