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Informist, Friday, Jan. 10, 2025

MUMBAI – Pharmaceutical stocks are likely to do well next week as their valuations have accounted for all the ongoing and upcoming events concerning the sector. However, any incremental information related to the sector would impact valuations, said Vishal Manchanda, senior vice-president of institutional research at Systematix Group.

Sector majors Lupin and Zydus Lifesciences might surprise investors with their earnings for the December quarter, a research associate tracking the sector at a major broking firm said. Shares of Zydus Lifesciences fell 25-30% in the last quarter and the stock has the potential to undergo a price correction, the analyst said. The stock hit a 52-week-high of INR 1,324.30 on Aug. 9. On Friday, shares of Zydus Life closed at INR 1,004.40, almost 32% lower from the 52-week-high. Meanwhile, Lupin is likely to do well as the company has numerous launch opportunities in the US, the research associate said.

Manchanda said companies such as Lupin, Zydus Life, Cipla, and Dr. Reddy's Laboratories might face challenges in the medium term, especially beyond 2025-26 (Apr-Mar). However, he is optimistic about Sun Pharmaceutical Industries as it has the necessary 'triggers' to overcome the medium-term challenges and the potential to re-rate the consensus estimates. "Sun Pharma has a better risk-reward profile to push the consensus estimate upwards," he said.

Analysts expect the pharmaceutical sector to do well in the long term as they expect the government to introduce more production-linked incentives to manufacture essential medical equipment and consumables. Senior executives from the pharmaceutical and hospital companies expect the government to allocate a higher budget towards public healthcare, incentives for research and development, and tax exemptions for more life-saving drugs, according to a report by The Economic Times newspaper Friday. The Nifty Pharma index closed in the red for the third consecutive session Friday, ending at 22380.85 points, down 2.1%.

TOP HEADLINES

* Indegene in pact with CliniOps to improve clinical trials ops

* Eli Lilly to set up global capability centre in Hyderabad

* Concord Biotech injectable unit to start commercial ops March end, says CEO

* HC bars Interio Intl from selling Omra drug on Sun Pharma arm's plea

* Lupin gets 'voluntary action' report from US FDA for Pithampur unit-1

* IPO Alert: Amanta Healthcare withdraws draft papers filed with SEBI

* Nuvama ups Dr Reddy's to 'buy' from 'reduce'; raises target price by 28%

* Dr Reddy's arm sells wholly-owned US subsidiary to Jaguar Labs for $1

* Alkem Labs to sell mfg unit in Pithampur for INR 1.49 bln to Rubicon

* CVS Caremark adds Zydus Life's diabetes tablets to its template formulary

* Biocon arm gets nod for Ustekinumab injection from Japanese drug regulator

* Zydus Life arm's Menkes drug accepted for filing, priority review by US FDA

* Caplin Point arm gets US FDA report for Aug inspection with no observations

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

US$1 = INR 85.96

Reported by Ayushman Mishra

Edited by Ashish Shirke

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