Cipla Stock Plunges Over 3% as Brokerages Cut Targets Amid Lanreotide Disruption

• Cipla shares dropped 3.48% to Rs 1,384.6, extending recent weakness and underperforming Nifty 50.
• The decline follows temporary halt in Lanreotide manufacturing due to USFDA remediation at its European contract partner, Pharmathen.
• Lanreotide is a top-three US product for Cipla, generating about $150 million annually with a 22% market share.
• Morgan Stanley and Nuvama downgraded Cipla, citing Lanreotide supply issues, gRevlimid phase-out, and increased competition.
• Nomura maintains a 'Buy' rating, believing Lanreotide sales loss is largely priced in, but overall sentiment remains cautious.

Why It Matters: Cipla's stock fell sharply due to Lanreotide supply disruptions and increased competition, leading to brokerage downgrades.