Pharma Stocks Outlook
Seen muted for 3rd wk in row on Trump policy overhang
This story was originally published at 22:03 IST on 8 November 2024
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MUMBAI – Pharmaceutical stocks are seen subdued next week as investors are likely to remain concerned about the uncertainty over drug and health policies under the new administration of Republican Donald Trump in the U.S., which remains the world's largest drug market by value, said experts. The Nifty Pharma index fell 1.2% this week, after a 1% fall the week before.
"Weaker rupee and continued anti-China policies could also benefit Indian pharma, though do watch out for any decision on drug price controls especially on prescription drugs--a measure that was initiated in 2020 during Trump's first term," noted Elara Securities in a report earlier this week.
Trump has not only indicated that Robert F. Kennedy Jr., a well-known critic of vaccines and advocate against Big Pharma, would play a significant role in decisions related to health policies in his administration, but also that he would put "America First" across all sectors. This could mean changes in strategy, pipeline or supply chains for global pharmaceutical giants, who are clients and business partners of many Indian pharmaceutical companies, according to analysts.
Companies in the sector have reported a mixed set of earnings for the September quarter so far. Some companies that have a complex and specialty drug portfolio like Lupin Ltd. have reported strong Jul-Sept results and guided for strong growth while others, which rely on generics, bulk drugs and acute therapies more, still face muted growth prospects.
Divi's Laboratories and Aurobindo Pharma will be in focus next week as they will announce Jul-Sept earnings on Saturday. Zydus Lifesciences and Alkem Laboratories will also react to their September quarter earnings, due next week.
As the defensive nature of the business makes the pharmaceutical sector a good defensive bet, investors may not completely exit shares of drugmakers, a research analyst at a local brokerage said. However, investors may churn portfolios within the pharmaceutical sector, he said.
TOP HEADLINES
* PRESS: Biocon Biologics looks to pare $300 mln acquisition debt in next 1 yr
* Earnings Review: Lupin exceeds expectations for Jul-Sept PAT, sales, margin
* Sanofi India Jul-Sept net profit falls 46% YoY to INR 822 million
* Emcure Pharma Jul-Sept consol PAT rises 39.8% YoY to INR 1.95 billion
* Alembic Pharma Jul-Sept consol PAT rises over 12% YoY to INR 1.53 billion
* Caplin Point Labs Jul-Sept consol PAT rises 13.9% YoY to INR 1.31 billion
* Abbott India Jul-Sept net profit rises 14.6% YoY to INR 3.59 billion
* JB Chem Jul-Sept PAT rises 19.4% YoY to INR 1.73 billion
* INTERVIEW: Dr Reddy's to keep focus on buyouts to drive growth, CFO says
* Granules India Jul-Sept consol net profit falls 4.8% YoY, sales down 18.7%
* IPO Alert: Sai Life Sciences gets SEBI's approval for fresh issue, OFS
* Earnings Outlook: Strong US, India ops to boost Lupin's Jul-Sept performance
* Analyst Concall: Mankind Pharma plans to repay INR 100-bln debt in 3 years
* Analyst Concall: Dr Reddy's says R&D focus more on high value products
* Dr Reddy's plans to launch 3 biosimilar products in US, Europe by FY27
* Earnings Review: Dr Reddy's PAT fall sharpest in 10 quarters in Jul-Sept
* Earnings Review: Mankind Pharma Jul-Sept consol PAT beats Street; up 30% YoY
* Gland Pharma Jul-Sept consol PAT falls 15.7% YoY to INR 1.64 billion
* Earnings Outlook: Mankind Pharma consol PAT seen up 18.5% on new launches
* Sun Pharma Advanced net loss widens on year to INR 1.08 bilion in Jul-Sept
* Sun Pharma gets preliminary injunction delaying launch of Leqselvi
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| Abbott India | 28553.05 | (-)2.50 | 29366.70 | 27637.70 |
| Alkem Laboratories | 5706.50 | (-)1.70 | 5833.00 | 5614.40 |
| Aurobindo Pharma | 1327.55 | (-)5.20 | 1373.40 | 1296.60 |
| Biocon | 321.30 | 1.10 | 336.60 | 312.00 |
| Cipla | 1592.60 | 2.10 | 1615.40 | 1557.30 |
| Divi's Laboratories | 5949.85 | 0.80 | 6146.00 | 5782.00 |
| Dr Reddy's Laboratories | 1283.65 | 1.90 | 1312.50 | 1244.80 |
| Gland Pharma | 1777.60 | 8.00 | 1846.90 | 1740.30 |
| GlaxoSmithKline Pharmaceuticals | 2561.15 | (-)6.30 | 2646.70 | 2507.70 |
| Glenmark Pharmaceuticals | 1666.50 | (-)1.40 | 1697.00 | 1634.80 |
| Granules India | 584.50 | 2.50 | 606.80 | 551.80 |
| Ipca Laboratories | 1558.65 | (-)3.00 | 1589.00 | 1533.70 |
| Laurus Labs | 499.35 | (-)0.10 | 513.00 | 487.30 |
| Lupin | 2104.60 | (-)4.20 | 2191.20 | 2035.50 |
| Natco Pharma | 1407.15 | (-)1.40 | 1455.10 | 1377.10 |
| Pfizer | 5286.85 | 2.50 | 5432.90 | 5191.00 |
| Sanofi India | 6451.90 | (-)4.70 | 6581.90 | 6374.90 |
| Sun Pharmaceutical Industries | 1809.60 | (-)2.60 | 1829.30 | 1781.10 |
| Torrent Pharmaceuticals | 3199.85 | (-)0.20 | 3257.60 | 3117.20 |
| Zydus Lifesciences | 970.35 | (-)3.40 | 988.00 | 956.20 |
| Nifty Pharma | 22542.25 | (-)1.20 | 22792.70 | 22303.60 |
| Nifty 50 | 24148.20 | (-)0.60 | 24373.20 | 23954.20 |
| S&P BSE Sensex | 79486.32 | (-)0.30 | 80160.20 | 78780.40 |
End
Reported by Apoorva Choubey
Edited by Deepshikha Bhardwaj
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