Cipla Actions: Analysts become optimistic about Cipla after solving the Revlimid patent; see rally of almost 30%

According to the brokerage firm, the settlement of gRevlimid is positive for Cipla shares, given that the market did not consider the growth potential earlier in this opportunity.

Shares of Cipla Ltd were down nearly a percentage point today on BVB after the company announced the settlement of the dispute with Celgene Corporation, a wholly owned subsidiary of Bristol Myers Squibb, on patents for Revlimid (lenalidomide). Most research and brokerage houses are growing on Cipla stocks and register an increase of over 26%. According to a BVB filing dossier, in order to settle all outstanding claims, Celgene agreed to grant Cipla a license for the Celgene patents required for the manufacture and sale of certain limited quantities by volume of generic lenalidomide in the United States from a confidential date. . this is some time after March 2022.

Also read: “Neutral” on Cipla, co-placed to provide 24% CAGR earnings

Analysts at Edelweiss Research welcomed the deal as it gave visibility to FY23 / 24E revenues. For Cipla, the brokerage firm assumed a maximum market share of 10% during the limited volume period. It revised its target price to Rs 945 from Rs 910 a piece earlier, implying an increase of almost 20% over the previous close. He recommended to “buy” Cipla shares.

According to JM Financial Services, the terms of the agreement offered to Cipla seem similar to those offered to Dr. Reddy and Alvogen, the agreed volume restrictions remaining confidential.

He also recommended to “buy” the shares with a target price of Rs 1000 per piece. The chip will have to jump by 26.7% compared to the previous close to reach the target price set by the brokerage. He added that once Cipla has reached a dominant market share in gProventil, US growth is now expected to be driven by gains in the market share of other albuterol inhalers, with Proventil’s share of the global albuterol market rising to 10 % and a favorable competitive landscape position Perrigo’s exit could be a key short-term effort.

The BOB capital market is also optimistic about Cipla shares, with a target price of Rs 900, 14% higher than the previous close. According to the brokerage firm, the settlement of gRevlimid is positive for Cipla shares, given that the market did not consider the growth potential earlier in this opportunity. “This increases confidence in Cipla’s capacity and focuses on maximizing value opportunity in complex generics,” she added.

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