Cipla shares touched a day high of ₹1,425.70 on Tuesday morning, moving higher after signing a licensing deal for an experimental cancer drug.

The company has signed an exclusive agreement with Chia Tai Tianqing Pharmaceutical Group, known as CTTQ, a subsidiary of China’s Sino Biopharmaceutical.

Under the deal, Cipla gets the rights to develop and sell a cancer drug called Rolditamig Deuderuxtecan, also referred to as TQB2102, across India, South Africa, and five other emerging markets.

Here’s how the work will be split between the two companies. CTTQ will keep manufacturing and supplying the drug, while Cipla takes charge of running clinical trials, handling regulatory approvals, and eventually selling the drug once it clears those hurdles.

In simple terms, one company makes the medicine and the other gets it to patients and doctors. TQB2102 belongs to a newer class of cancer drugs called antibody-drug conjugates, which target a protein called HER2 found on some cancer cells.

It’s being studied across several HER2-related cancers and has shown promising early results in a hard-to-treat form of advanced breast cancer.

This deal comes at a time when Cipla’s recent quarterly numbers weren’t particularly strong.

In its first quarter results for FY27, released back in July, the company’s net profit dropped 39% year on year to ₹789 crore, missing what analysts had expected.

Revenue for the quarter grew around 2% to about ₹7,119 crore, also falling short of Street estimates, with weaker US sales weighing on the numbers.

As of 12:10 pm, Cipla was trading at ₹1,411.10 on the NSE, up 0.13% for the day.

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