Tuesday, May 21, 2024

Cipla stock up by 1% after it signs licence agreement with Novartis AG

Drugmaker Cipla stock rose by a per cent on Monday after it has signed a perpetual license agreement with Switzerland-based Novartis Pharma AG to manufacture and market Galvus and Galvus combination brands which are used in the treatment of type 2 diabetes.

The company’s scrip was trading 1.04 per cent up at 902 on BSE.

Cipla will manufacture and market Novartis Pharma AG’s Galvus and Galvus combination brands  from January 1, 2026.

“Cipla Limited has signed a perpetual license agreement with Novartis Pharma AG (Switzerland) on 10th April 2023 to manufacture and market Galvus® and Galvus® combination brands, used in the treatment of type 2 diabetes from 1st January 2026,” said Cipla in its regulatory filing.

Cipla informed that the agreement is subject to satisfaction of certain conditions precedent. The company will however continue to market and distribute Galvus branded products.

In the oral diabetic medication category, Galvus is one of the leading brands in the Dipeptidyl Peptidase-4 (DPP4) space. The medicine is expected to contribute significantly to Cipla’s portfolio in the diabetes care continuum space with the drug’s reported sale of 268 cr, as per IQVIA MAT February 2023.

Cipla Ltd reported 9.93 per cent rise in consolidated net profit to 800.96 crore for the quarter ended December 2022. This is against a net profit of 728.60 crore in the corresponding quarter last fiscal.

The revenue from operations of Cipla rose by 5.2 per cent to 5,730.08 as against 5,442.86 in the corresponding quarter last fiscal.

On a sequential basis, the consolidated net profit was up by 1.52 per cent from 788.90 crore in the September quarter.

The earnings before interest, taxes, depreciation and amortization (EBITDA) grew 14.3 per cent on year to 1,407.56 crore, as against 1,231 crore, while the margins expanded by 170 bps to 24.2 per cent.

The shares of Cipla were trading 1.04 per cent, while it touched intraday high of 904.05 on BSE.

 

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