HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Stock Market News > Hot Pursuits

Cipla continues to be displaced by negative report

February 03, 2003 12:47 IST

Cipla's race to be a frontrunner in the asthma market received a setback last week when an Italian company got the nod to sell an anti-asthma drug in Germany, and, Cipla's stock was squarely impacted in the bargain.

The downturn continued on Monday, with Cipla dipping 0.5% to Rs 824 on BSE in half-an-hour's trading . Volatility was also evident in the fact that the scrip had risen from the day's low of Rs 812.10. Around 2,200 Cipla shares were traded on BSE so far.

The scrip lost 2.2% to Rs 828.35 on Friday, recording its 52-week closing low, following the news. The scrip has come off sharply from Rs 943.10 on 9 January 2003 also affected by its disappointing Q3 results.

Cipla's proposed launch of anti-asthma inhalers in Germany, already delayed, was seen as a key trigger for the stock. But with an Italian company pre-empting it, the stock was bound to take a beating.

As per reports, Italy's Chiesi Farmaceutici has received approval for selling budesonide-based inhalers that use ozone-friendly HFA propellants, in Germany. Budesonide is an anti-asthma drug.

For Q3 ended 31 December 2002, the pharma major posted a modest 6% rise in net profit to Rs 66.46 crore compared to Rs 62.65 crore in the corresponding period of the previous year. Net sales increased by 5% to Rs 387 crore (Rs 3.87 billion) from Rs 366.91 crore (Rs 3.66 billion).

Both net sales as well as net profit came in below capitalmarket.com poll projections - a 20-30% growth in net profit to Rs 75 crore-81.6 crore and net sales of between Rs 423.7-Rs 439 crore (Rs 4.23-4.39 billion), a rise of 15.7-19.8%.

The 60% fall in other income and 63% rise in depreciation capped the rise in PAT at 6%. Despite the modest results, the company registered a decent 320 basis points rise in operating margins to 23% from 19.8%.

In December 2002, the Drug Controller General of India directed the state drug authority of Silvassa to suspend the license for the manufacture of Montair Plus. Montair Plus is a fixed dose combination of montelukast and bambutarol, which was manufactured by Okassa Pharma and marketed by Cipla. The suspension was necessitated as Okassa Pharma had not taken the necessary approval from the Drug Controller General of India for manufacturing and marketing the product. The DCGI has also advised Cipla to withdraw all the stock of the product from the market.

The company, meanwhile, has also entered into a strategic alliance with California-based Watson Pharmaceuticals Inc., to develop, manufacture and market 10 generic pharmaceutical products, many of which are currently under development. Under the agreement, Watson will have exclusive US marketing rights to all the developed products and will also own the regulatory filings. On approval of the products, Cipla will manufacture and supply products to Watson.

BSE Code: 500087


More Hot Pursuits

Source: www.capitalmarket.com

Intra-Day Market Report



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


Cipla gets bitter dose

Ranbaxy slips on institutional sale

Lupin recovers



People Who Read This Also Read


Infosys Technologies in limelight

CC meet after Guj polls

HPCL, BPCL sell-off







HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.