Shares of Cipla slipped 3 percent in opening trade on January 29 after Samina Hamied stepped down from her role as the executive vice-chair of the company. However, she will continue to remain associated with the company as a non-executive director who is liable to retire by rotation.
The drugmaker stated that the transition in Hamied's role is part of a larger promoter strategy aimed at transforming Cipla into a completely professionally managed company like conglomerates such as the Tata Group.
The company approved the appointment of Balram Bhargava as an additional and independent director for five years until March 31, 2029.
Bhargava is a prominent figure in global public health leadership and has actively championed the south-south cooperation, advocated for equitable healthcare access, supported the democratisation of scientific research, and fostered public-private collaboration to introduce new technologies and cost-effective innovative products into healthcare systems. He also brings more than 35 years of experience to the table.
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At 9.20am, the shares of Cipla were trading at Rs 1,326 on the NSE. Some profit-booking also seeped into the counter, pulling the stock lower as it has run up over 7 percent in the past month, buoyed by its robust Q3 results.
On that account, brokerage firm Nomura has downgraded the stock to a 'neutral' rating, with a price target of Rs 1,427 as it sees limited upside in the counter given its recent run-up and a lack of new near-term catalysts.
The firm also sees the approval and launch timeline of key drugs, Advair and Abraxane in the US, which are caught in regulatory snags, as the key monitorables for Cipla.
Also read | Cipla's Samina Hamied steps down as executive vice chairperson citing personal commitments
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