Cipla Shares Drop 4% Amid Lanreotide Production Halt, Brokerage Downgrades

• Cipla shares fell 4% after announcing a temporary halt in Lanreotide production due to USFDA remediation at a facility.
• Lanreotide is a key drug for Cipla, being one of its top three products in the US market, which contributed 27% to its FY25 topline.
• The production pause is linked to nine USFDA observations at Pharmathen's Rodopi facility in Greece, the exclusive supplier of Lanreotide to Cipla.
• Re-supply of Lanreotide is expected to resume in the first half of financial year 2027.
• Brokerages Morgan Stanley and Nuvama downgraded Cipla and cut price targets, citing potential market share loss and negative developments.

Why It Matters: Cipla's stock dipped due to a temporary halt in key drug Lanreotide production, leading to brokerage downgrades.