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CIPLA: Good, but not enough

Cipla's deal with Andrx Corp. to supply Omeprazole bulk may not lead to a firm trend in the stock price in the near future.

While the deal is expected to enhance Cipla's revenue and earnings over a period of time, the equity market may view the announcement negatively because of a steady build-up of expectations over the last few months that Cipla would announce a higher valu e deal.

A recurring theme in relation to market expectations about Cipla is that the company is in a position to announce a more lucrative deal based on its drug delivery research for Omeprazole - the largest selling drug in the world. In the absence of such a h appening, there may be negative sentiment at the counter for a short period. The company at present trades around Rs. 795. -- BL Research Bureau