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Informist, Thursday, Apr 17, 2025

MUMBAI - Shares of pharmaceutical companies are expected to move in a narrow range next week. The primary focus is likely to be on their Jan-Mar earnings. Investors will continue to monitor developments relating to US tariffs, which has been leading to increasing uncertainty across global markets. While some believe the worst is over and the market has factored in the negatives, others say it is too early to decide that stocks in the sector have bottomed out, given the unpredictability of US President Donald Trump's policies.

Media reports this week said the US administration has launched an investigation into imports of pharmaceuticals and semiconductors, and Trump has said he would impose levies on these sectors soon. Pharmaceuticals was among the few sectors on which the US had not announced tariffs. The president said manufacturing pharmaceutical drugs in the US would reduce the country's dependence on foreign supplies.

Though pharma companies are likely to post strong earnings for the March quarter, there is a high risk of downgrades in the sector as it is export-oriented and has large exposure to the US market. According to an Informist poll, the cumulative net profit for 11 pharmaceutical companies in the Nifty 200 is expected to rise 14% on year and sales to rise 11%.

Laurus Labs is scheduled to kick off the pharma sector's March quarter earnings with the release of its results Apr. 24. The company's consolidated net profit is seen between INR 1.40 billion and INR 1.90 billion, as per estimates from three broking firms. The revenue is seen in the range of INR 15.20 billion-INR 16.69 billion. Both figures would be higher than in the year-ago period, when the company had posted a bottom line of INR 756.10 million on a revenue of INR 14.40 billion. On Thursday, the stock closed 0.2% higher at INR 628.05 on the National Stock Exchange. 

This week, most pharma stocks, barring Lupin, Glenmark Pharmaceuticals, and Zydus Lifesciences, closed higher. The Zydus Lifesciences stock fell after the company said a US district court had passed an order against it in litigation relating to the validity of a patent held by Japanese company Astellas Pharma Inc. for a formulation of mirabegron tablets.

However, Nomura Global Markets Research retained its 'buy' rating on the stock with a target price of INR 1,140, which is 37% higher than Thursday's closing level of INR 831.55. The case has not yet reached a final conclusion and there remains the possibility of generics prevailing, the brokerage said. The appeal is only scheduled to come up for hearing in February and a decision is only likely in the second half of 2026, it said.

TOP HEADLINES
* Zydus Lifesciences says will continue to sell Mirabegron generic in US
* Alembic Pharma gets US FDA final approval for Carbamazepine tablets
* Zydus Lifesciences to buy 4.7% more stake in Amplitude Surgical SA
* Zydus Lifesciences' arm invests in Canada's Feldan Therapeutics
* US court rules against Lupin in Mirabegron patent infringement case
* Zydus Life gets adverse order from US court in mirabegron patent litigation
* Glenmark Pharma arm to launch generic of Adderall tablets in US in May
* HC bars Palsons Derma from selling pdts similar to FDC's 'Kromalite'
* AstraZeneca Pharma surrenders marketing licence for Olaparib tablets
* Laurus Labs' Andhra Pradesh unit gets US FDA establishment inspection report
* Dr Reddy's denies claims of 25% cut in workforce costs amid margin pressures
* Regeneron, Biocon arm Biocon Biologics settle patent case in US
* Aurobindo Pharma gets US FDA OK to make, sell Rivaroxaban tablets
* PRESS: Sanofi India looks to sell insulin brand Lantus for INR 20 bln
* Zydus Life gets US FDA final nod to manufacture Jaythari tablets
* Western Railway asks Jyothy Labs to transfer ops of Ahmedabad laundry unit
* US FDA issues 11 observations to Aurobindo Pharma arm's Raleigh plant

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:

End

Reported by Anjana Therese Antony
Edited by Rajeev Pai

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