Cipla is bracing for significant revenue and margin headwinds after the anticipated expiry of its Revlimid (lenalidomide) patent next year—set to shave off around 140–240 bps from FY26 margins, with Elara Capital forecasting a further 300 bps contraction in FY27 . This looming expiration has prompted analysts like Emkay Global to maintain a “reduce” rating and set a target price of ₹1,500 . While Cipla is proactively advancing its pipeline—filing six respiratory assets for the U.S. (including Symbicort, Qvar), with additional complex generics and peptide filings slated over FY26–27 —these efforts are expected to only partially offset the Revlimid gap. Moreover, investor scrutiny is rising around Cipla’s strategic flexibility, especially its potential stake sale, after Torrent Pharmaceuticals’ acquisition of JB Chemicals rendered them unavailable as potential buyers . Meanwhile, the company remains embroiled in a patent lawsuit with Exelixis over Cabometyx, aiming to delay Cipla’s U.S. generic launch until key patents expire in 2032 .

Overall, the patent expiry overhang is clouding near-term visibility on earnings and strategic direction, though Cipla’s broader R&D momentum might lend some cushion.

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