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Indian Drugmaker Cipla Beats Quarterly Profit View on Strong Demand

May 13 (Reuters) - Cipla, India's third-biggest drugmaker by sales, reported a fourth-quarter profit that beat estimates on Tuesday, helped by strong demand for its drugs used to treat chronic conditions, especially respiratory illnesses.

The company's consolidated net profit came in at 12.22 billion rupees ($143.5 million) in the January-March period. Analysts, on average, expected 10.24 billion rupees, per data compiled by LSEG.

Total revenue increased 9.2% to 67.3 billion rupees.

Cipla's U.S. sales are usually driven by its tumour drug Lanreotide, its second-biggest revenue generator. However, the company had warned in October that certain supply chain issues related to the drug would last until the fourth quarter.

India's drugmakers that derive significant revenue from North America through their cheaper version of innovator drugs have been on edge following U.S. President Donald Trump's tariff threat.

The company, earlier this year, said that tariffs should not influence decisions at India's drug companies.

The Trump administration, which initially spared the sector from any kind of duties, is likely to make an announcement on tariffs in the coming weeks.

Last week, rival Dr Reddy's beat fourth-quarter profit estimates, driven by new drug launches.

($1 = 85.1560 Indian rupees)

Reporting by Rishika Sadam and Kashish Tandon in Bengaluru; Editing by Eileen Soreng

Source: Reuters


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