Cipla shares gained 0.8% in early trade on Tuesday, September 31, following the announcement of a significant cancer drug licensing agreement. The stock was trading at ₹1,420.9 apiece as investors responded positively to the new partnership. However, the stock has declined 3.6% in the past month and is down 5.3% this year, indicating ongoing market challenges despite the positive development.
Cipla Ltd has secured exclusive rights to develop and commercialise an experimental HER2-targeted cancer drug across seven markets through a licensing agreement with China's Chia Tai Tianqing Pharmaceutical Group (CTTQ), which is a subsidiary of Sino Biopharmaceutical (SBP Group). According to the latest reports, Cipla will receive exclusive rights to develop and commercialise TQB2102 in India, South Africa and five other emerging markets. Under the agreement, Cipla will handle local clinical development, regulatory approvals and commercialisation across the licensed territories, while CTTQ will continue to manufacture and supply the drug. The drug, Rolditamig Deuderuxtecan, also known as TQB2102, is a potential HER2 bispecific antibody-drug conjugate (ADC) being evaluated for the treatment of HER2-expressing cancers.
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.
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 agreement strengthens the company's oncology portfolio with a promising HER2-targeted ADC and could help accelerate development and patient access, subject to regulatory approvals. 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. Eric Tse, CEO of SBP Group, emphasized that the company's strategy includes expanding global access to medicines developed by the group and that Cipla's scale and local expertise make it an ideal partner for the licensed markets. The partnership is intended to speed up local development and regulatory approvals across the licensed territories.
In July, Cipla reported disappointing first quarter earnings that missed analyst estimates across multiple parameters. The company'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. The company's EBITDA of ₹1,192 crore was 33% lower than the previous year and below the poll estimate of ₹1,376 crore, with EBITDA margin contracting to 16.7% from 25.6% in the year-ago period. The company's US market sales for the June quarter were at $162 million, below estimates of $173 million, with North America contributing 22% of the firm's topline for the first quarter. As per Business Standard, the scrip shed 0.10% to currently trade at ₹1,414.60 on the BSE.
