The pressure on the stock followed Cipla’s disclosure of supply disruptions stemming from inspectional observations issued by the US Food and Drug Administration (USFDA) at a third-party manufacturing partner.
In its exchange filing, Cipla said Pharmathen International S.A. of Greece—its exclusive manufacturer and supplier for Lanreotide Injection to Cipla USA Inc.—has halted production after the USFDA flagged issues during an inspection of its Rodopi facility held between November 10 and 21, 2025.
The inspection resulted in nine Form 483 observations. A redacted version of the report was made public on January 7, 2026, sparking media scrutiny and further volatility in Cipla’s stock.
Following internal evaluation and discussions with Pharmathen, Cipla confirmed that manufacturing of Lanreotide has been temporarily paused to support remediation efforts addressing the USFDA’s observations. The company said re-supply is expected to resume in the first half of FY 2026–27.
Until production restarts and receives quality clearance, Lanreotide will remain in limited supply, the company added. Cipla emphasised that it is closely monitoring supply levels and remains committed to restoring stable and reliable availability of the drug at the earliest.
On the valuation front, Cipla’s stock is trading at a price-to-earnings (PE) ratio of 20.59, while its price-to-book (PB) ratio stands at 3.58.From a technical perspective, Trendlyne data shows that Cipla’s 14-day Relative Strength Index (RSI) is at 32.0, suggesting the stock is nearing oversold levels. An RSI reading below 30 typically indicates oversold conditions, whereas values above 70 point to overbought territory.
Additionally, Cipla is trading below all eight of its key Simple Moving Averages (SMAs), underscoring a bearish technical setup and indicating sustained downside pressure on the stock.
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