Cipla Shares Fall To Biggest Intra-day Lows In Six Months Despite Eli Lilly Deal For Diabetes Drug

• Cipla-Eli Lilly partner to distribute Tirzepatide under the Yurpeak brand in India
• Tirzepatide is used to manage type 2 diabetes and chronic weight issues in adults
• The stock has outperformed the broader pharma index YTD

Shares of Cipla fell 3.3% to ₹1,590 on Friday, their biggest intraday decline in over six months. The stock extended its losses to a second day, after gaining for five consecutive sessions, adding more than 7%.

The shares are down despite Cipla striking a deal with Eli Lilly’s Indian unit to sell a diabetes management drug.

Cipla-Eli Lilly Partnership To Distribute Tirzepatide

Cipla has partnered with Eli Lilly and Company (India) to distribute and promote Tirzepatide under a second brand name, Yurpeak, in India. Cipla will handle distribution and promotion, while Lilly will continue to manufacture and supply the drug at the same price as its existing brand, Mounjaro.

Tirzepatide is used to manage type 2 diabetes and chronic weight issues in adults. Yurpeak will be available in the KwikPen prefilled multi-dose pen, offered in six dose strengths (2.5 mg to 15 mg) and administered once weekly, allowing healthcare providers to personalize treatment plans. The partnership will target over 100 million Indians with diabetes, many of whom are inadequately treated.

What Is The Retail Mood On Stocktwits?

The stock’s intraday decline weighed on retail sentiment on Stocktwits. It shifted to ‘neutral’ from ‘bullish’ a day earlier.

The stock has seen a marginal 4% increase in value so far this year. However, it has outperformed the Nifty Pharma index, which has declined 4.5% so far.

Cipla is also the biggest laggard on the benchmark Nifty 50 index.