Pharma Stocks Outlook
Lacklustre next week amid lack of growth triggers
This story was originally published at 19:51 IST on 6 December 2024
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MUMBAI – Pharmaceutical stocks could remain lacklustre for the second straight week, after seeing healthy gains in the past one month, as investors are unlikely to put incremental inflows into equities ahead of key data releases in many major economies and the US Federal Reserve's policy review in mid-December, according to analysts. The Nifty Pharma index gained 0.9% this week, compared to a 2.3% rise in the benchmark Nifty 50.
While the defensive nature of their business and the depreciation of the rupee will mean that pharmaceutical stocks are not sold, they will find it difficult to find favour with investors amid slowing pace of new launches, policy uncertainty in the US under President-elect Donald Trump's administration, patent issues for some drugmakers and rising costs, experts said.
"While we expect the improvement to sustain partly in the subsequent months, we believe domestic business growth for most companies will underwhelm Street expectations," Elara Securities said in a report. "We expect volume growth to remain in low single digits and pricing-led growth may moderate in the coming months," the brokerage added.
The Indian pharmaceutical market's revenue grew by 9.9% in November, driven by strong sales of cardiovascular, urological, and gastro-intestinal drugs, according to research firm Pharmarack Technologies. All therapy areas saw revenue growth in November, but respiratory, anti-malarials and gynaecological drugs were laggards. The industry's overall volumes rose 3% in November, compared to a fall of 3% during October.
Muted volumes have been an issue for most top drug categories in India, as well as other key markets in recent months, and several new launches have been delayed, said a research analyst at a bank-sponsored mutual fund house. Thus, any churn within the sector will be inclined towards companies with niche portfolios such as Sun Pharmaceutical Industries and Lupin, or towards contract research and contract manufacturing and development firms, he said.
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* Piramal Pharma's US arm enters into a $407,400 settlement with VetDC
* IPO Alert: Sai Life Sciences sets price band at INR 522-549 per share
* Indian pharma market sales grow 10% in November; volumes rise 3%
* Aurobindo Pharma arm Eugia Pharma gets US FDA nod for pazopanib tablets
* Divi's Labs says no material impact on co on Novartis losing US court appeal
* Torrent Pharma to acquire 3 anti-diabetes brands from Boehringer Ingelheim
* Ipca Laboratories voluntarily closes defunct Mexican arm
* Alembic Pharma gets US FDA tentative nod for Olopatadine ophthalmic solution
* Andhra police to probe acquisition of Kakinada Seaports by Aurobindo Realty
* Granules India says US FDA tag on Hyderabad unit not to affect existing pdts
* Mankind Pharma sells stake in Mankind Specialties to Vascare Sciences
* Granules India's Hyderabad unit gets US FDA official action indicated tag
* Gland Pharma gets US FDA nod for Latanoprost ophthalmic solution
* Cipla promoters sell 1.7% stake for INR 21.10 bln via block deal
* Cipla says 2 promoters sell 1.7% stake in co via open mkt sale
* Biocon arm gets final nod from US FDA for Yesintek, Bmab 1200 biosimilar
* PRESS: Two Cipla promoters to offload stake worth INR 20.04 bln in co Mon
* Lupin not aware of any information explaining movement in co's shares Fri
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 | 29035.25 | 4.70 | 29411.00 | 28812.20 |
| Alkem Laboratories | 5505.40 | (-)2.40 | 5706.20 | 5392.60 |
| Aurobindo Pharma | 1246.20 | (-)1.30 | 1263.50 | 1228.80 |
| Biocon | 380.05 | 4.10 | 386.90 | 369.40 |
| Cipla | 1477.40 | (-)3.70 | 1526.10 | 1451.60 |
| Divi's Laboratories | 6130.75 | (-)0.70 | 6230.80 | 6055.10 |
| Dr Reddy's Laboratories | 1253.70 | 4.30 | 1267.20 | 1229.60 |
| Gland Pharma | 1813.25 | 4.30 | 1851.30 | 1785.00 |
| GlaxoSmithKline Pharmaceuticals | 2343.15 | (-)4.10 | 2424.40 | 2292.40 |
| Glenmark Pharmaceuticals | 1528.10 | (-)0.00 | 1572.10 | 1499.80 |
| Granules India | 575.65 | (-)1.50 | 589.50 | 554.40 |
| Ipca Laboratories | 1538.20 | (-)0.30 | 1568.90 | 1484.60 |
| Laurus Labs | 589.75 | 4.00 | 598.50 | 578.90 |
| Lupin | 2133.55 | 4.00 | 2153.40 | 2110.60 |
| Natco Pharma | 1449.90 | 5.40 | 1478.30 | 1423.20 |
| Pfizer | 5232.90 | (-)1.50 | 5325.40 | 5136.00 |
| Sanofi India | 6242.30 | (-)2.30 | 6343.50 | 6155.50 |
| Sun Pharmaceutical Industries | 1804.85 | 1.30 | 1832.90 | 1787.00 |
| Torrent Pharmaceuticals | 3332.50 | 0.30 | 3410.70 | 3262.90 |
| Zydus Lifesciences | 995.10 | 3.00 | 1012.60 | 963.30 |
| Nifty Pharma | 22434.75 | 0.90 | 22630.20 | 22300.40 |
| Nifty 50 | 24677.80 | 2.30 | 24813.70 | 24552.60 |
| S&P Bse Sensex | 81709.12 | 2.40 | 82133.50 | 81294.00 |
End
Reported by Apoorva Choubey
Edited by Deepshikha Bhardwaj
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