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Informist, Friday, Jan. 09, 2025

 

MUMBAI – Shares of pharmaceutical companies are expected to remain range-bound in the coming week as investors are now looking at the Oct-Dec earnings. The Nifty Pharma index has been in a phase of consolidation for 15 months and the December quarter earnings are the immediate trigger for individual pharmaceutical stocks, according to analysts.

 

According to the average of estimates available from eight brokerages, the cumulative net profit of Nifty 200 pharmaceutical and healthcare-related companies is expected to decline 3% on year and 18% on quarter in Oct-Dec. Companies with higher exposure to the US market are expected to perform worse, and companies such as Cipla are expected to see their earnings being hit by adverse regulatory developments.

 

The Nifty Pharma index is expected to remain range-bound next week, with support for the sectoral index seen at 22100 and its resistance seen at 23100, according to Jatin Gedia, vice-president of technical research at Teji Mandi Investment Technologies. For the week ended Friday, the Nifty Pharma index closed flat at 22761 points. 

 

Analysts see Cipla's earnings taking a hit in the near term. An analyst at a domestic brokerage firm sees Cipla's earnings before interest, tax, depreciation, and amortisation for 2025-26 (Apr-Mar) falling 5% on year in case the company faces supply disruptions for its tumour drug Lanreotide in the US, as its Greece-based partner Pharmathen International's facility recently received adverse observations from the US Food and Drug Administration. 

 

Brokerage Jefferies said domestic sales growth of Indian drugmakers will be in high single digits. It expects companies to face intense competition in the market during the semaglutide launch wave from March to April, right after its patent expiry in March. Dr. Reddy's Laboratories, Cipla and Zydus Lifesciences have higher exposure to Revlimid and Jefferies expects the first half of 2026 to be weak for these companies, as the drug is set to lose its patent and faces higher price erosion.

 

Mankind Pharma, Ajanta Pharma, and Sun Pharmaceuticals are Jefferies' top picks, based on earnings visibility and portfolio strength. The outcome of the section 232 investigation on pharmaceutical exports to the US, currently underway, is expected to be declared by the end of the March quarter. Jefferies expects the outcome to materially impact export-oriented pharma companies.  

 

TOP HEADLINES

 

* Alkem Laboratories launches Renocia cyclical therapy kit to manage hair loss
* Granules India arm gets US FDA tentative OK for generic Amphetamine tablets
* Gland Pharma gets US FDA nod for Olopatadine hydrochloride ophthalmic drug
* Cipla's Lanreotide partner Pharmathen Intl faces adverse US FDA observations
* Biocon subsidiary to introduce 3 new oncology biosimilars at US conference
* Dr Reddy's launches Hepatitis-E vaccine Hevaxin in India
* Bombay HC bars Anrose Pharma from using name similar to Ipca Lab's 'Zerodol'
* HC notice to Novo Nordisk on Natco Pharma plea to revoke semaglutide patent
* Biocon allots 6.88% stake to Mylan Inc via preferential issue on Mon
* IPO Alert: Hindustan Laboratories files DRHP with SEBI for fresh issue, OFS

 

Following are the resistance and support levels for key pharmaceutical stocks for next week as per calculations based on their prices on the National Stock Exchange:

 

 

Company	Price	Week-on-Week Change in %	Resistance	Support
Abbott India	28095.00	(-)0.10	28701.70	27481.70
Alkem Laboratories	5785.50	3.50	5890.50	5654.50
Aurobindo Pharma	1198.70	(-)1.40	1222.80	1176.00
Biocon	379.60	(-)3.40	390.80	366.50
Cipla	1465.70	(-)3.00	1475.60	1451.20
Divi's Laboratories	6616.50	3.50	6728.50	6473.50
Dr Reddy's Laboratories	1210.10	(-)3.70	1222.80	1197.20
Gland Pharma	1681.00	(-)2.00	1712.10	1656.70
GlaxoSmithKline Pharmaceuticals	2372.10	(-)4.50	2429.40	2321.40
Glenmark Pharmaceuticals	2007.20	(-)2.80	2109.70	1945.70
Granules India	601.95	(-)2.20	621.10	589.60
Ipca Laboratories	1575.00	12.20	1620.90	1498.30
Laurus Labs	1083.00	(-)2.10	1118.30	1061.90
Lupin	2182.20	3.70	2216.70	2138.70
Natco Pharma	890.20	(-)0.30	941.70	857.30
Pfizer	4871.80	(-)0.30	4941.30	4757.10
Sanofi India	4122.20	(-)0.50	4198.90	4046.70
Sun Pharmaceutical Industries	1729.90	0.10	1778.90	1702.50
Torrent Pharmaceuticals	3963.40	2.00	4071.30	3896.10
Zydus Lifesciences	894.90	(-)2.40	922.70	876.60
Nifty Pharma	22761.00	(-)0.10	23109.20	22522.40
Nifty 50	25683.30	(-)2.50	26066.60	25431.40
S&P Bse Sensex	83576.24	(-)2.60	84798.90	82791.00

 

End

 

Reported by Eshitva Prakash

Edited by Tanima Banerjee

 

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