Pharma Stocks Outlook
Generics cos seen down on pressure on US pdt prices
This story was originally published at 22:12 IST on 9 May 2025
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MUMBAI – Pharmaceutical companies in the business of selling generics in the US are seen down next week after US President Donald Trump earlier this week signed an executive order to boost domestic manufacturing. This order is seen as negative for Indian companies as it could reduce the cost advantage currently enjoyed by Indian companies such as Dr Reddy's Laboratories, Sun Pharmaceutical Industries, Aurobindo Pharma and Cipla. Further, analysts are concerned the US may announce tariffs on pharmaceutical products soon.
"The Trump administration's section 232 inquiry into pharmaceuticals is likely to be completed this week, leading to a tariff announcement on the pharmaceutical sector, possibly this month," Nuvama Institutional Equities said in a research report Tuesday.
Dr Reddy's Laboratories' management, while talking in a conference call post earnings Friday, acknowledged the risk due to tariffs and said the overall market is under pressure. However, they said that the company will not be affected by tariffs.
The Nifty Pharma started the week on a positive note and had gained Monday. However, pharmaceutical companies fell after Trump signed executive orders to boost domestic manufacturing. Since the announcement, the Nifty Pharma has lost over 3% and ended Friday at 21071.75 points. The sectoral index ended lower this week after gaining for three straight weeks.
Among major earnings next week, Cipla will announce its quarterly results Tuesday and Lupin on Wednesday. Weak US sales of Lanreotide injection because of continued supply constraints are likely to weigh on Cipla's March quarter earnings, though the contribution from generic Revlimid and robust domestic sales are expected to partially offset the impact, according to analysts. The company is expected to report a consolidated net profit of INR 10.4 billion for the March quarter, up 10% on year but down 34% sequentially, according to an average of estimates from 15 broking firms.
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* Suven Pharma OKs allotment of 128 mln shares to Cohance Life shareholders
* Zydus Life gets US FDA final nod for Glatiramer Acetate injection generic
* Aarti Industries Jan-Mar PAT falls 25% on year to INR 990 million
* Lupin gets approval from US FDA for Raltegravir tablets
* AstraZeneca Pharma gets drug body OK to import Trastuzumab deruxtecan
* Suven Pharma changes name to Cohance Lifesciences effective Wednesday
* Analyst Concall: Dabur sees high single digit value growth in India ops FY26
* Earnings Review: Dabur reports worst Q4 revenue growth since pandemic days
* Lupin launches Eslicarbazepine Acetate tablets in US
* Kartik Rajendran to replace Swati Dalal as MD of Abbott India
* Sun Pharma appoints Jayashree Satagopan as CFO effective Jul 1
* Alembic Pharma Jan-Mar consol PAT falls 12% YoY to INR 1.57 billion
* Biocon arm Biocon Biologics gets US market access for Yesintek biosimilar
* Neuland Labs gets 1 observation from US FDA for mfg unit in Telangana
* IPO Alert: Corona Remedies files draft papers with SEBI for INR-8-bln OFS
* Concord Biotech gets US FDA 4 observations for Dholka unit post inspection
* Alembic Pharma gets US FDA approval for heart disease drug ticagrelor
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:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| Abbott India | 30165.00 | (-)1.80 | 30751.70 | 29261.70 |
| Alkem Laboratories | 4946.50 | (-)2.60 | 5030.20 | 4808.20 |
| Aurobindo Pharma | 1164.40 | (-)3.90 | 1193.50 | 1111.50 |
| Biocon | 329.90 | 3.50 | 345.70 | 320.10 |
| Cipla | 1480.00 | (-)3.00 | 1499.40 | 1454.00 |
| Divi's Laboratories | 6025.50 | (-)1.30 | 6188.20 | 5760.20 |
| Dr Reddy's Laboratories | 1155.90 | (-)2.30 | 1182.30 | 1125.30 |
| Gland Pharma | 1426.00 | 1.60 | 1457.10 | 1368.90 |
| GlaxoSmithKline Pharmaceuticals | 2759.90 | (-)3.30 | 2814.80 | 2666.40 |
| Glenmark Pharmaceuticals | 1398.20 | 1.70 | 1429.70 | 1367.10 |
| Granules India | 440.90 | (-)3.20 | 451.60 | 425.40 |
| Ipca Laboratories | 1361.80 | (-)1.20 | 1397.10 | 1307.30 |
| Laurus Labs | 588.80 | (-)5.10 | 601.40 | 565.90 |
| Lupin | 2037.40 | (-)1.00 | 2092.70 | 1948.50 |
| Natco Pharma | 809.60 | (-)3.80 | 833.90 | 762.90 |
| Pfizer | 4249.90 | (-)1.10 | 4361.40 | 4044.40 |
| Sanofi India | 5825.50 | (-)2.10 | 5954.50 | 5607.50 |
| Sun Pharmaceutical Industries | 1744.80 | (-)4.60 | 1782.20 | 1713.00 |
| Torrent Pharmaceuticals | 3141.20 | (-)3.50 | 3242.50 | 3050.90 |
| Zydus Lifesciences | 878.65 | (-)0.80 | 894.90 | 850.90 |
| Nifty Pharma | 21071.75 | (-)2.60 | 21283.50 | 20719.40 |
| Nifty 50 | 24008.00 | (-)1.40 | 24264.50 | 23807.50 |
| S&P Bse Sensex | 79454.47 | (-)1.30 | 80549.80 | 78420.70 |
End
Reported by P. Madhu Kumar and Anshul Choudhary
Edited by Deepshikha Bhardwaj
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