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Informist, Friday, Dec. 12, 2025

MUMBAI – Shares of pharmaceutical companies are likely to rise next week and generic companies are expected to benefit from a seasonally strong Oct-Dec quarter, analysts said. The companies with chronic therapy segments are expected to continue outperforming their acute therapy peers. Analysts are waiting for the next trigger that may impact investor confidence and are waiting for the US Congress' vote on Biosecure Act, which will be a positive for Indian contract development and manufacturing organisations.

"Nifty Pharma index looks good on technical charts," Rupak De, senior technical analyst at LKP Securities, said. The analyst said that support for the index is placed at 22400 points and on the higher end, it might move towards 23500 points. On a weekly basis, the index ended slightly lower at 22808.70 points.

Generic companies are expected to perform well in the ongoing quarter, owing to flu season in the US and India. Other than seasonal variation factors, the goods and services tax rejig-related headwinds dissipating in the December quarter are also expected to aid pharmaceutical companies, Mehul Sheth, analyst at HDFC Securities, said.

Chronic therapies have risen on steady demand and companies with a chronic therapy-heavy portfolio are expected to see further benefits, according to Sheth. The companies with acute therapy portfolios are expected to perform on par with broader growth trends in the Indian pharmaceutical market.

Weight-loss drug Mounjaro is expected to remain among the faster growing drugs and the broader GLP-1 category of drugs is expected to see an uptick in the upcoming one or two years on the back of licencing deals. Multiple companies are expected to join the GLP-1 market after the Semaglutide drug goes off patent. "Ozempic and Wegovy are not picking up (as much) in the Indian market, possibly because, efficacy-wise, Mounjaro is showing better results compared to its peers," said Sheth, adding that he does not expect global drug-maker Novo Nordisk's decision to launch Ozempic in India to have a large impact on sales of Mounjaro.

Global brokerage Macquarie said the US Biosecure Act would be enacted by the end of 2025. The brokerage expects the legislation to accelerate growth for Indian contract development and manufacturing organisations as US companies try to reduce drug production dependency on China. The brokerage said that while it is a positive for near-term sentiment, it could take a couple of years to reflect in the financials of CDMO companies due to pre-requisite review and validation processes. Divi's Laboratories is the front-runner, in terms of capacity creation, to benefit from this Act, considering that the company has a strong track-record of regulatory clearances and robust purification capabilities.

Hospital operators may see their performance decline on year in Oct-Dec and Jan-Mar due to a high-base effect, owing to a seasonal variation in the same period last year. The delay in the festival season, when demand is often muted, may affect the sequential performance of these companies, Sheth said. Among major outliers, Apollo Hospitals Enterprise and Max Healthcare Institute are expected to outperform their peers on the back of new hospital additions. However, these companies may also see a short-term impact on their operating margins due to unit additions despite greater top line traction.

TOP HEADLINES

* Novo Nordisk launches diabetes drug Ozempic in India
* Lupin arm, PolyPeptide Group partner to scale up global peptide supply chain
* HC bench refuses to stay Dr Reddy's export of semaglutide to some nations
* Piramal Pharma's Kentucky unit gets US FDA Form-483 with 4 observations
* India "bubbling" with hope, self-confidence, says RIL Chairman Mukesh Ambani
* S&P Global places Biocon Biologics operations on 'creditwatch positive'
* HC stays effect of 'Wellford Pudin Hara' trademark registration on Dabur plea
* Alembic Pharma gets US FDA final approval for loteprednol etabonate solution
* Glenmark Pharma US arm to launch leucovorin calcium for injections
* IPO Alert: Corona Remedies issue closes with 137 times subscription
* Cipla launches obesity, diabetes drug tirzepatide under brand name Yurpeak
* India Ratings assigns AA+ rtg to Biocon's bk loan facilities of INR 5.5 bln
* Sun Pharma to export Semaglutide where Novo doesn't have patent, notes HC
* Malta Medicines Authority conducts inspection at Alkem Lab's Daman mfg unit
* Zydus Life launches Denosumab biosimilar Zyrifa for bone issues in cancers
* Telangana inks MoUs for INR-5.75-tln investments at Rising Global Summit
* Zydus Life arm, Formycon in pact to supply Keytruda biosimilar in US, Canada
* IPO Alert: Corona Remedies subscribed 9.33 times as of second day
* HC to decide on Dabur plea against Wellford Pharma on use of pudin hara name
* Caplin Point arm gets US FDA final approval for Linezolid injection
* Detected INR 417 bln fake GST input tax credit claims in Apr-Oct, says govt
* Novo Nordisk moves HC to bar Sun Pharma from manufacturing semaglutide
* IPO Alert: Corona Remedies offer subscribed 62% on Day 1; QIBs stay away
* Caplin Point arm gets US FDA final approval for Acetaminophen injection
* Concord Biotech CFO Lalit Sethi to retire early due to personal reasons
* Dr Reddy's in licensing pact with Immutep for Eftilagimod Alfa in some mkts
* Biocon board OKs raising up to INR 45 bln via QIP, others
* Biocon arm gets US FDA tentative nod for Carbidopa and Levodopa capsules
* Dabur India gets no-objection from NSE for merger of Sesa Care with co
* US FDA issues 3 observations to Ipca Lab's API mfg facility in Maharashtra

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 Eshitva Prakash

Edited by Ashish Shirke

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