Cipla Ltd., a major Indian pharmaceutical company, experienced a notable decline in its stock price on Friday, January 16, 2026, with shares dropping between 2.4% and nearly 5% across various exchanges. The sell-off was triggered by the company's disclosure of a temporary halt in the manufacturing of Lanreotide Injection, one of its top three revenue-generating products in the United States market. This disruption stems from regulatory issues at the manufacturing facility of Pharmathen International S.A. in Rodopi, Greece, Cipla's exclusive supplier for Lanreotide. The United States Food and Drug Administration (USFDA) inspected Pharmathen's facility between November 10 and 21, 2025, resulting in nine inspectional observations documented in a Form 483. A redacted version of this document was made public on January 7, 2026, which initiated media reports and subsequent volatility in Cipla's stock. Cipla has confirmed that production has been temporarily paused to facilitate remediation efforts addressing the USFDA's concerns. The company anticipates that the re-supply of Lanreotide to the US market will resume in the first half of the financial year 2026-27 (FY27). Until production restarts and receives necessary quality clearances, the product will remain in limited supply. This development has led several brokerage firms to reassess Cipla's near-term earnings outlook. Morgan Stanley, for instance, trimmed its price target and cut earnings growth estimates for FY26 and FY27. Nuvama Institutional Equities downgraded Cipla's stock to 'Reduce' and significantly lowered its target price, citing potential market share loss and broader earnings risks for FY27. The disruption of Lanreotide, which contributed 27% to Cipla's US topline in FY24-25, alongside the expiry of generic Revlimid exclusivity and increasing competition for other generic drugs, poses a significant challenge to Cipla's financial performance in the coming fiscal years.