Cipla shares seeing short term profit booking today

Cipla’s shares are seeing short term profit booking today. At 2:00 p.m. IST, 24^th October, 2025 the stock price is down by 3.57%, trading at Rs 1,586.40. Nifty 50 index is down by 0.62% at this time. Between 26^th September and 21^st October, 2025, Cipla’s share price rose by more than 11%. This was in the expectation that Cipla would enter into a licensing agreement with Eli Lilly to sell its weight loss drug in India. This deal was announced yesterday.

Cipla will sell Eli Lilly’s weight loss drug in India under Yurpeak brand name

As per this deal, Cipla will sell Eli Lilly’s weight loss drug in India under the Yurpeak brand name. El Lilly will manufacture the drug. Yurpeak will be sold as pre-filled injector pen. The product will be same as Maounjaro Kwikpen weight loss drug of Eli Lilly.  Its dosage will be once-a-week.

Exponential growth rate being seen in weight loss drugs market

Weight loss drugs help in fast reduction of weight of users by controlling their appetite. Their sales are growing at a phenomenal pace. Eli Lilly is seeing strong growth in sales of its Mounjaro Kwikpen since it launched it in India in March this year. According to data from PharmaTrac, India’s weight loss drug market was already worth more than Rs 600 crore, by June 2025.

Eli Lilly will benefit from the extensive distribution network of Cipla in India

By doing this partnership, Eli Lilly will benefit from the vast distribution network that Cipla has in India. Cipla’s distribution network is not just limited to larger cities, but reaches to smaller towns and rural areas of the country. The partnership will help Eli Lilly in quickly growing its market in India and in increasing its market share. It competes with Novo Nordisk’s Wegovy in the Indian market.

Cipla’s stock has underperformed in 2025

The deal can prove to be a big source of revenue for Cipla in the foreseeable future. Cipla’s stock has gained 3.79% year-to-date in 2025. Nifty 50 index has gained 8.37% in this period. Cipla’s shares have underperformed the Nifty 50 index by more than 4% this year.

Cipla’s stock is currently trading at a price-to-earnings (P/E) ratio of 23. Nifty Pharma index is trading at an average P/E ratio of around 34 currently. Cipla’s shares are trading at a lower P/E valuation than many of its industry peers. It may therefore see some rise again in the near term.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE