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Informist, Friday, Jun. 20, 2025

MUMBAI – Shares of pharmaceutical companies are expected to perform well in the coming weeks, driven by strong exports and attractive valuations, analysts at a domestic brokerage firm said. Despite some sense of renewed investor confidence in the sector, analysts feel the risk of further acceleration in adoption of generic drugs and potential impact on market share of branded generics remains a concern. Markets will also keep an eye out for any fresh threats by US President Donald Trump on levying tariffs on pharmaceutical products, semiconductors, and rare earth mineral imports. Trump this week reiterated that the US will impose tariffs on the pharma sector. 

According to a report by Kotak Institutional Equities, the pharma sector showed a modest growth of 6.9% in May, driven by cardiac, anti-diabetic, and respiratory therapies. Companies like Glenmark Pharmaceuticals, JB Chemicals and Pharmaceuticals, and Ajanta Pharma outperformed the Indian market, while Cipla and Alkem saw a slowdown in growth, the report said. The sector's rebound has been attributed to US policy support, strong exports, and attractive valuations.

In the upcoming week, certain companies will be in focus. Glenmark Pharma, which clocked 11.8% growth in May with healthy volume growth and outperformance in the cardiac segment, is one of them. Biocon, which Friday concluded raising INR 45 billion through qualified institutional placement, and Sun Pharmaceutical Industries, which appointed Kirti Ganorkar as the managing director for five years, will also be in focus.

Nuvama Institutional Equities in a research report Wednesday said it expects the sector to maintain its growth momentum, driven by a robust pipeline in biosimilars and generics. This will be supported by a slightly stronger acute season, pricing, acquisitions, and in-licensing deals. The report also said that domestic sales are expected to grow 10-23% in 2025-26 (Apr-Mar). Sun Pharmaceutical Industries, Cipla, Lupin, Emcure, and JB Pharma remain Nuvama's preferred picks.

The Nifty Pharma index on Friday closed at 21613 points, up 0.8% from Thursday. JB Chemicals, which gained just over 6% in Friday's session, was the top performer in the index, followed by Abbott India and Ajanta Pharma, both of which rose nearly 1.9% and 1.7%, respectively.

TOP HEADLINES

* Second phase of Sai Life Sciences' Bidar unit starts commercial operations
* Cohance Life to sell assets of clinical research, bio-analytical unit
* Govt levies anti-dumping duty on acetonitrile, pretilachlor from China
* Biocon QIP closes Thursday, issue price set at INR 330 per share
* US FDA issues 7 observations to Natco Pharma after Hyderabad unit inspection
* Zydus Life's Ahmedabad unit gets two observations from US FDA
* Alembic Pharma's Karakhadi unit gets US FDA establishment inspection report
* US FDA lists 5 observations after Glenmark Pharma's Monroe plant inspection
* Govt allows export of up to 25,000 tn pharma grade sugar with riders
* Neuland Lab gets SEBI warning for violation of insider trading norms
* Alembic Pharma issues $22-mln corporate guarantee for US subsidiary
* Equity Futures:More pain seen for Sun Pharma on tariff woes, FDA observations
* Biocon approves raising funds through QIP, floor price INR 340.20 a piece
* Can't bar Roche from filing suit preventing Cadila from 'Vivitra' launch: HC
* Zydus Life arm Zydus Healthcare appoints Swati Dalal as MD from Mon
* Lupin, Sino Universal in pact to commercialise Tiotropium inhaler in China
* Sun Pharma's Halol unit in Gujarat gets 8 observations from US FDA
* Syngene Intl's Bengaluru unit gets US FDA establishment inspection report
* Sun Pharma appoints Kirti Ganorkar as MD for 5 years effective Sept 1
* US FDA issues an observation for Natco Pharma's API unit in Hyderabad
 

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

Reported by P Madhu Kumar

Edited by Ashish Shirke

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