Cipla shares traded at day's lows on Friday, declining 1.2% to ₹1,377.7, extending the stock's year-to-date loss past 8% and down 3% over the last month. The stock has declined 7.4% so far in 2026, compared with an 8.6% fall in the Nifty 50. The marginal decline came despite strength in the broader market, with the Sensex up 595 points (0.78%) to 76,748.32 and the Nifty gaining 93 points (0.39%) to 23,966.80 at 11:05 am. The stock has underperformed over the near term, declining 5.03% over the past month against the Nifty 50's 2.68% fall, with the current price closer to the lower end of its 52-week range between ₹1,165.70 and ₹1,673.00.
Morgan Stanley retained its Underweight rating on Cipla with a target price of ₹1,218, making it the second-lowest target among analysts who track the stock. The brokerage's target implies a downside potential of 12.4% from Thursday's closing price. Among the 41 analysts who cover Cipla, 26 have a "buy" rating, nine say "hold", while six have a "sell" rating on the stock. The consensus 12-month target price of ₹1,513 implies an upside of around 8.8% from Thursday's close. Morgan Stanley's cautious stance comes even as it views Cipla's exclusive US licensing deal with Qilu Pharmaceutical for the latter's Keytruda biosimilar, QL2107, as positive for the company's oncology portfolio. The brokerage sees the pembrolizumab biosimilar as a potentially important oncology asset that could expand access to the treatment through lower costs, but believes the opportunity is still some time away.
Cipla's wholly owned subsidiary Invagen Pharmaceuticals Inc has entered into an exclusive partnership with Qilu Pharmaceutical Co. Ltd for the licensing and supply of QL2107, a Keytruda (pembrolizumab) biosimilar, in the United States. Under the agreement announced on September 3, Qilu will handle development, regulatory filings and product supply, while Cipla USA Inc will drive US commercialisation through its existing commercial infrastructure. The collaboration aims to improve access to advanced therapies for cancer patients while lowering treatment costs, with the companies leveraging Cipla's established commercial capabilities to successfully launch the biosimilar subject to regulatory approval. However, Morgan Stanley has flagged significant competitive risk, noting at least 13 pembrolizumab biosimilars are currently in development, including programmes from Zydus, Formycon, Samsung Bioepis, Celltrion and Amgen. Qilu Pharmaceutical brings a pipeline comprising more than 50 biosimilars and over 130 innovative drugs, combining the Chinese drugmaker's research, development and manufacturing capabilities with Cipla's commercial presence in the US.
The companies reported that TQB2102 has shown encouraging clinical potential in patients with HER2-low advanced breast cancer. As reported by CNBC TV18, the drug is an antibody-drug conjugate (ADC) designed to use an antibody to identify a particular target on cancer cells and deliver a cancer-killing drug to them more directly. The latest company statement reveals that TQB2102 binds simultaneously to the ECD II and ECD IV domains of HER2 and incorporates a cleavable linker and a topoisomerase I inhibitor payload. The treatment remains under clinical evaluation, meaning its eventual availability in Cipla's licensed markets will depend on further development and regulatory approvals. The drug has received three Breakthrough Therapy Designations from China's National Medical Products Administration Centre for Drug Evaluation and is currently being evaluated in HER2-low and HER2-positive breast cancer, colorectal cancer and biliary tract cancer across multiple treatment settings. QL2107's pharmacokinetic study is expected to be completed in May 2027, meaning regulatory milestones are still ahead, with the brokerage expecting benefits from the deal to materialise only from 2028 onwards, around the expected expiry of Keytruda's US patent.
According to CNBC TV18, the agreement gives Cipla access to a late-stage oncology asset without requiring it to develop the molecule from scratch. Cipla Managing Director and Global CEO Achin Gupta stated that the partnership reflects the company's confidence in the long-term potential of biosimilars and supports its strategy to build a strong oncology-focused portfolio. Hanchang Zhang, General Manager of Qilu Pharmaceutical, emphasized that the partnership combines their R&D and manufacturing strengths with Cipla's US commercial expertise to bring a high-quality, affordable pembrolizumab biosimilar to US patients. The collaboration brings together SBP Group's differentiated late-stage oncology asset and development and manufacturing capabilities with Cipla's established regulatory, medical, market access and commercial presence across India, South Africa, and other emerging markets. However, Morgan Stanley acknowledged the deal's strategic logic while noting that execution and regulatory timing will be key variables for Cipla in the competitive biosimilars market.
The latest financial results show Cipla's consolidated net profit declined 39.19% to ₹789.05 crore in Q1 FY27, compared with ₹1,297.62 crore posted in Q1 FY26. However, revenue from operations increased 3.51% YoY to ₹7,077.02 crore in the quarter ended June 30, 2026. Cipla is a global pharmaceutical company with operations across India, South Africa, North America and other regulated and emerging markets, focusing on complex generics and therapies including respiratory, anti-retroviral, urology, cardiology, anti-infective and CNS segments. The company operates 46 manufacturing facilities globally, producing more than 1,500 products across over 80 markets. Morgan Stanley noted that achieving Cipla's targeted $1 billion US run-rate will require strong execution across gVentolin, gAdvair, additional respiratory launches and a major peptide opportunity, leaving limited room for regulatory or competitive setbacks.
