Cipla Maintains Neutral Rating, Targets Rs 1,307: Motilal Oswal
Cipla Secures USFDA Approval for Generic Ventolin HFA, Boosting Growth Prospects
Cipla has received approval from the United States Food and Drug Administration (USFDA) for the first AB-rated generic of Ventolin HFA, an albuterol inhaler. This approval gives Cipla a first-to-market edge, enabling pharmacy-level substitution in the US market. The broader market size for this product is estimated to be approximately $1.5 billion, although the effective opportunity is closer to $500 million. Moreover, the limited competition in this space is expected to translate into estimated annual sales potential of approximately $100 million.
The approval of G-Ventolin is expected to support Cipla's growth prospects and strengthen its respiratory portfolio. However, it will also offset the impact of competitive pressure on g-Revlimid. Despite this, analysts predict a moderate earnings compound annual growth rate (CAGR) of 6-8% over the period of FY26-28.
| Product | Broader Market Size | Effective Opportunity | Estimated Annual Sales |
|---|---|---|---|
| G-Ventolin | $1.5 billion | $500 million | $100 million |
Read also: Reliance Consumer Products Posts FY26 Revenue of Rs 22,000 Crore
Investor Takeaway
Maintain Neutral with a TP of INR1,307.
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