Pharma Stocks Outlook
Likely to rise next week on fall in prices of APIs
This story was originally published at 21:17 IST on 6 June 2025
Register to read our real-time news.Informist, Friday, Jun. 6, 2025
MUMBAI - Stocks of pharmaceutical companies are likely to rise next week as a significant decline in active pharmaceutical ingredient prices is expected to benefit Indian pharma companies. The prices of APIs have dropped significantly due to over-capacity and aggressive pricing by Chinese suppliers, according to media reports. This decline in API prices will likely boost profit margins for pharmaceutical companies.
The GLP-1 segment is also expected to be a growth driver for pharmaceutical companies. Companies such as Ajanta Pharma and Glenmark Pharmaceuticals are preparing to launch products in this segment to capture a larger market share in the US. Analysts believe that the GLP-1 segment will continue to grow in the coming years, driven by increasing demand for diabetes and obesity treatments.
Focus in the upcoming week will also be on companies such as Lupin, Zydus Lifesciences, Dr. Reddy's Laboratories and Cipla. Lupin has launched gPredForte with 180-day CGT (Competitive Generic Therapy) exclusivity, and its market share has increased to 19% in April, brokerage Nomura said in a report. Zydus has also launched gSprycel and has ramped up its market share to 16% in April. Dr. Reddy's has seen stabilisation in its market share in key generic products, while Cipla's sales of Lanreotide injection have improved, the brokerage said.
Investors will also keep an eye on regulatory updates and observations that companies such as Sun Pharmaceutical Industries, Dr. Reddy's, and Cipla have received from the US Food and Drug Administration, which could impact their operations. Sun Pharmaceutical's Halol facility, which has been under an import alert since Dec. 2022, is undergoing a surprise inspection by the US Food and Drug Administration.
The Nifty Pharma ended higher on Friday, rising over 1% throughout the week. The best performing stocks this week were Dr. Reddy's Laboratories, Cipla and Alkem Laboratories that ended 2.3%, 1% and 0.5%, higher respectively. The stocks that were the worst hit in the Nifty Pharma index were Divi's Laboratories that closed over 1% lower, IPCA Laboratories down 1% and Garnules India fell 0.7%.
According to Nuvama Instituitional Equities, the outlook for the pharma sector remains positive, driven by long-term structural drivers and a focus on high-margin offerings. Analysts believe that companies with strong product pipelines and strategic expansion plans will outperform in the coming months. Top picks for the sector include Dr. Reddy's, Lupin and Ajanta Pharma, according to Nuvama instituitional equities.
TOP HEADLINES
* LIC raises stake in Dr Reddy's by 2% since Oct, stake now at 8.2%
* Dr Reddy's, Alvotech to co-develop cancer biosimilar drug Keytruda
* Gland Pharma arm takes corrective action for French regulator's observations
* Promoter group member offloads 1.42% stake in Alkem Labs via bulk deal
* Gland Pharma gets US FDA approval for Angiotensin II acetate injection
* Sun Pharma discontinues clinical trials of psoriasis drug SCD-044
* Zydus Life, arm to buy 2 US-based biologics mfg facilities of Agenus cos
* Biocon gets drug regulator's OK for diabetes drug Liraglutide in India
* US FDA inspected Canada unit with no observations, says Piramal Pharma
* US FDA issues 4 observations to Alembic Pharma's unit in Gujarat
* Zydus Life gets US FDA tentative approval for Rifaximin tablets
* AstraZeneca Pharma Jan-Mar PAT rises 47.5% YoY to INR 582.5 million
* Cipla gets one observation from US FDA for unit in Bommasandra, Bengaluru
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 | 31630.00 | 3.90 | 32843.30 | 30343.30 |
| Alkem Laboratories | 4868.50 | (-)4.50 | 4979.50 | 4755.50 |
| Aurobindo Pharma | 1161.90 | 1.20 | 1186.80 | 1137.60 |
| Biocon | 330.05 | (-)1.70 | 334.60 | 325.40 |
| Cipla | 1504.20 | 2.60 | 1519.90 | 1476.10 |
| Divi's Laboratories | 6544.50 | (-)1.00 | 6684.80 | 6434.80 |
| Dr Reddy's Laboratories | 1320.90 | 5.60 | 1340.80 | 1285.00 |
| Gland Pharma | 1642.00 | 3.40 | 1669.90 | 1618.10 |
| GlaxoSmithKline Pharmaceuticals | 3438.50 | 4.20 | 3554.40 | 3309.80 |
| Glenmark Pharmaceuticals | 1590.20 | 9.10 | 1618.30 | 1549.90 |
| Granules India | 529.95 | (-)0.10 | 538.80 | 520.70 |
| Ipca Laboratories | 1370.90 | (-)3.80 | 1407.90 | 1342.50 |
| Laurus Labs | 642.05 | 5.30 | 654.50 | 620.40 |
| Lupin | 1999.60 | 2.10 | 2019.90 | 1975.70 |
| Natco Pharma | 858.30 | (-)2.80 | 873.00 | 845.20 |
| Pfizer | 5706.50 | 1.70 | 5863.20 | 5600.20 |
| Sanofi India | 6147.00 | (-)0.70 | 6256.00 | 6059.00 |
| Sun Pharmaceutical Industries | 1679.20 | 0.10 | 1699.10 | 1659.10 |
| Torrent Pharmaceuticals | 3154.30 | (-)0.60 | 3180.60 | 3119.60 |
| Zydus Lifesciences | 960.15 | 3.20 | 970.80 | 943.50 |
| Nifty Pharma | 21684.40 | 1.10 | 21800.40 | 21499.00 |
| Nifty 50 | 25003.05 | 1.00 | 25259.40 | 24543.30 |
| S&P BSE SENSEX | 82188.99 | 0.90 | 83036.10 | 80716.60 |
End
Reported by Anshul Choudhary
Edited by Vandana Hingorani
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