Umang Vohra, CEO of Cipla, has guided for a US sales run-rate of $235-$240 million for the remaining quarters of FY25. This comes after the drugmaker clocked in its best-ever sales in the US generics market at $250 million in Q1 of FY25.
The management attributed the best-ever sales in the US market to market share gains in asthma drug Albuterol which now stands at 17 percent, combined with the launch of a new generic version of hormone drug Lanreotide, which happens to be the company's key peptide launch for FY25. Along with that, a marginal increase in the contribution from the cancer drug Revlimid also aided US sales.
The stellar US sales also lifted Cipla's earnings, helping it beat the Street's estimates for net profit and margins during the April-June quarter.
The strong show in the US generics market and improved product mix drove the company's EBITDA margin to 25.6 percent, well above the 24.2 percent estimated by a poll of seven brokerages by Moneycontrol. On that front, Vohra expects margins to stabilise around the current levels of 24.5-25.5 percent for FY25.
Regarding regulatory actions on the Goa plant, the management emphasised that resolving the US FDA's observations is a top priority. Cipla is collaborating with external consultants and awaits the US drug regulator's response to the remedial measures taken.
As for key drug launches delayed by regulatory issues, Cipla mentioned that the launch timeline for the chemotherapy drug Abraxane depends on the FDA's response to the Goa facility. Last month, the US FDA issued six observations for this facility. If the Goa facility clears US FDA reinspection with ease, the management stated that the launch of Abraxane can be fairly quick.
Cipla also revealed that the respiratory drug Advair, a major upcoming launch, is expected to be filed from its Invagen Long Island unit before the end of 2025, targeting a Q4 FY25 launch. Cipla will need to file Advair from its Invagen Long Island unit, due to delays caused by regulatory actions at its Pithampur unit which was originally supposed to manufacture the drug.
Additionally, Cipla aims to launch two peptides by Q3 or Q4 of the current fiscal year, which is anticipated to boost its earnings.
As for the India market, Cipla expects a growth rate of around 10 percent, in the future. "Rainfall is here across the country now which provides us with seasonal triggers to support an uptick in domestic sales," Vohra said in a post-earnings call. The drugmaker recorded a 5 percent growth in sales within its India business in Q1 FY25.
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