Cipla shares fall 3% after Eli Lilly deal to market weight-loss drug in India: Here's what analysts say

Cipla share price

The shares of Cipla dropped more than 3 percent on October 24, even after the pharma giant announced a deal with Eli Lilly to market diabetes and obesity drug Tirzepatide in India under a new brand name.

The sharp fall in the share price comes after the stock gained more than 7 percent in the past eight sessions amid buzz over the deal. Analysts say that while the deal is a positive for the stock, it has already been priced in and investors are now resorting to profit booking.

Eli Lilly-Cipla sign agreement for weight loss drug 'Tirzepatide':

Eli Lilly and Cipla have signed an agreement to distribute and promote Tirzepatide in India under a second brand name 'Yurpeak', the companies announced in a joint press release on October 23. The prescription drug is used to treat type 2 diabetes and for chronic weight management.

Under the agreement, Cipla will have the rights to distribute and promote Yurpeak. It will be the second brand name for Tirzepatide to be launched in India, after popular weight loss medicine Mounjaro. Eli Lilly will manufacture and supply Yurpeak to Cipla, and the price will be the same as Mounjaro.

India has about 101 million people living with diabetes and nearly half of these in the adult patients category are being inadequately treated with suboptimal glycemic control, the companies claimed, citing a ICMR-INDIAB national cross-sectional study.

The newly announced drug will be available in the form of KwikPen, a multi-dose single-patientuse prefilled pen. Each of these pens would contain four fixed doses, which has to be administered once weekly. The pen will be available in six dose strengths: 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg.

Here's what Elara Capital says:

Elara Capital called the move 'innovative' for both Eli Lilly and Cipla, noting that this would add 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 brokerage says that the deal can add approximately 3 percent to Cipla's domestic revenue and around 1.5 percent to its overall EBITDA in the next three years.

"We do not see further upside to the stock price from these levels because of the deal. We keep our estimates and target price unchanged at this stage; we will revisit after Q2 earnings scheduled for 30 October 2025," it added.

Elara retained its 'Accumulate' call on Cipla shares, with a target price of Rs 1,670 per share. This implies an upside potential of more than 1.5 percent from the stock’s previous closing price.

Cipla share price history:

Cipla shares have gained more than 3 percent in the past six months, and are up over 4 percent in 2025 so far. The stock had gained more than 7 percent in eight sessions to hit a 52-week high of Rs 1,673 per share on October 23, before the company announced its deal with Eli Lilly.

The stock is currently up more than 19 percent from its 52-week low of Rs 1,335 apiece, which it had hit in April this year. Its P/E ratio currently stands at around 25. It is currently among the top losers on benchmark index Nifty 50.

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