Cipla takes wait‑and‑watch call on weight loss generic semaglutide, to focus on tirzepatide

Cipla

• Cipla prioritizes tirzepatide over semaglutide, taking a wait-and-watch approach
• Yurpeak sales hit Rs.14 crore in first month, strong in tier-2 and 3 markets
• Cipla's US business falls 26% YoY due to lenalidomide, lanreotide supply issues.

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Cipla Ltd. on Friday said it will take a “wait‑and‑watch” approach on entering the diabetes and weight loss therapy semaglutide market even as rivals prepare for generic launches, as the company prioritises its partnership with Eli Lilly for tirzepatide, which it considers the superior obesity and diabetes therapy.

“Our current focus remains on tirzepatide in terms of being the best‑in‑class molecule,” said Achin Gupta, Cipla’s Managing Director and Global CEO (Designate). “We have possibilities to explore on Sema (semaglutide), but we would rather wait and watch and see how the market plays out, especially at lower price points once genericisation happens.”

Cipla launched Yurpeak (tirzepatide) in India under a partnership with Eli Lilly to treat type 2 diabetes and chronic weight management. Eli Lilly manufactures and supplies the product, while Cipla manages marketing and distribution. Cipla is working on expanding the coverage beyond major cities, with pricing in line with Mounjaro.

“Yurpeak is a massive opportunity for us,” Gupta said. “Since we believe that is the best‑in‑class product out there and is under patent for a long time, at the moment we’re focusing maximum energies on that.”

In its first month (December 2025), the Yurpeak has recorded sales of Rs.14 crore, performing well in tier-2 and 3 markets.

Cipla decision to go slow on semaglutide, contrast with rivals Dr.Reddy's and Sun Pharma, who got regulatory approval in India for launching generic versions of semaglutide. Both companies announced that they will be launching generic Ozempic in March, following the patent expiry of the drug. Analysts expect the generic would be cheaper by 50-60 percent than branded drug.

US dragged by lenalidomide cliff, lanreotide supply issues

The drugmaker posted a lacklustre performance in its US business due to a sharp drop in anti-cancer generic lenalidomide sales and supply disruptions in lanreotide.

Cipla’s North America, which consists largely US, reported around 26% drop YoY to $167 million in Q3FY26, as lenalidomide contributions dwindled sharply and lanreotide supplies were disrupted after an USFDA audit hit its partner Pharmathen. Gupta acknowledged the drag openly.

“We had a small contribution from lenalidomide in Q3, and lanreotide faced supply challenges following the USFDA audit of our partner,” he said. “In the meantime, the product will be in limited supplies… but we are working on enabling an alternate site together with the partner.”

The supply issues will spill into next quarter as well, the company said.

Gupta described US performance as a “temporary” setback that will be offset by upcoming high‑value launches, particularly in respiratory and peptides. “There are two respiratory assets where we believe we could have a sole‑generic opportunity, and these are pretty sizable,” he said. “Our pipeline gives us the confidence to offset lenalidomide and deliver strong growth.”

Complex generics over volume play

Cipla plans to lean further into complex, high‑margin launches — including long‑acting injectables and peptides — to rebuild momentum in the US.

“We focus a lot on the value and complexity of launches rather than the number of filings,” Gupta said. “This will help us make up for the loss.” He reiterated that filgrastim in the US is a “small entry” and more of a capability‑building step in biosimilars.