CIPLA - Cipla Ltd. Share Price

Here are the major questions and their detailed answers from the Q&A section of Cipla's Q3 FY26 earnings call transcript:

1. Tushar Manudhane: "Is there anything related to Lanreotide dragging the gross profit lower compared to earlier quarters, outside Revlimid?"

   Ashish Adukia: "Revlimid significantly impacted our gross margin this quarter. Additionally, our R&D expenditures incurred costs for R&D materials and APIs, contributing to the lower margin. There was also a minor product mix dilution, but this was not substantial."

2. Kunal Dhamesha: "How much of the $66 million decline in US sales can be attributed to Revlimid versus Lanreotide?"

   Ashish Adukia: "The majority of the decline is linked to Revlimid. A smaller portion is due to Lanreotide. Without these products, our base performance remains subject to new product launches, which we anticipate will bolster future revenues."

3. Neha M.: "Will any of the peptide monetization come from the Pharmathen facility affected by FDA issues?"

   Ashish Adukia: "No, none of the peptide products we're anticipating for monetization are linked to the Pharmathen facility."

4. Damayanti Kerai: "What visibility do you have on the upcoming launches, especially peptides?"

   Achin Gupta: "We're confident about our respiratory asset launches. The approvals are progressing well, so we anticipate no issues due to current FDA site concerns."

5. Surya Narayan Patra: "Considering the lower outlook due to discontinued drugs, should we expect margins to fall below 20%?"

   Achin Gupta: "While the impact of Lanreotide and Revlimid is known, our pipeline is expected to offset these declines as we gain FDA approvals for future products. Thus, we see this as a short-term issue."

6. Bino Pathiparampil: "Was the 1,100 crores payment to Novartis related to the April 2023 deal?"

   Ashish Adukia: "Yes, it pertains to the acquisition of perpetual rights for Galvus, initially structured as an in-licensing deal."

7. Abdulkader Puranwala: "Post-Lanreotide, how will the US revenue guidance adjust?"

   Umang Vohra: "Due to Lanreotide's discontinuation, we will have to revise our previous guidance of US revenues nearing $1 billion by FY27 downwards."

8. Sidharth Negandhi: "Do you anticipate any short-term increases in market share due to the difficulties smaller firms face with Schedule M implementation?"

   Achin Gupta: "While smaller competitors may struggle, we don't foresee significant immediate changes to our brand or trade generic shares as our quality standards already exceed regulatory requirements."

9. Shashank Krishnakumar: "Are the respiratory assets filed from the US or India?"

   Umang Vohra: "Three out of four respiratory assets are indeed filed from our US sites. The fourth is from our Goa facility."

10. Chirag Dagli: "Could you clarify if there's a qualitative difference in margin expectations now that Revlimid is gone?"

    Ashish Adukia: "Going forward, we expect profitability from our respiratory lines to be lower than that of Revlimid but maintaining good gross margins due to in-house production."

These answers provide insights into Cipla's operational performance and strategic outlook moving forward, reflecting management's responses to key investor inquiries during the earnings call.