Pharma Stocks Outlook
Dr Reddy's, Cipla results eyed; profit-taking likely
This story was originally published at 18:18 IST on 17 July 2026
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MUMBAI – Shares of pharmaceutical companies, particularly of those with significant revenue exposure to the US, could come under pressure next week if Dr. Reddy's Laboratories and Cipla report disappointing US sales. Both companies are scheduled to release their June-quarter earnings next week, with investors focusing on new product launches and plans to offset the loss of high-margin sales from the generic version of the cancer drug Revlimid. Analysts expect a mixed quarter for the sector, which is likely to weigh on investor sentiment.
"Revlimid is not included in the base (sales) this (June) quarter, which will lead to weak US sales growth and EBITDA (earnings before interest, tax, depreciation, and amortisation) growth on a year-on-year basis," Mehul Sheth, research analyst at HDFC Securities, said. "We can summarise this (June) quarter by three things: very strong performance in India, declining to muted sales in the US, and higher input costs leading to margin pressure," he said. "FY27 will likely be a corrective year for Indian pharma players," he added.
Speaking specifically about Dr. Reddy's, Sheth said the company's decision to temporarily halt supplies of semaglutide pens would shift the ramp-up to Canada and hurt sales of its weight-loss drugs in the US. Despite expecting sales of just 5–6 million pens in 2026-27(Apr-Mar), in line with other analysts' projections and nearly half the management's original guidance, Sheth has pencilled in semaglutide sales of $100 million–$110 million in the US and Canada, down from his earlier estimate of $155 million sales.
On the technical front, Nifty Pharma continues to look positive and any dip from current levels could be a buying opportunity, Jatin Gedia, vice president of technical research at Teji Mandi Investment Technologies, said. He expects the index to pull back to 25000 levels and retest its consolidation levels. The sectoral index has risen 14% in three months. It is likely to face resistance at 26500 and find support at 25000 , Gedia added.
This week, the Nifty Pharma index ended marginally lower at 25645 points. IPCA Laboratories, Divi's Laboratories, and Wockhardt gained 5-6%, while Torrent Pharmaceuticals, Dr. Reddys Laboratories, and Lupin were among the worst hit performers, declining 2-3%.
TOP HEADLINES
* Alkem Lab buys 793.7 mln shares in arm for INR 11 bln via rights issue
* Biocon arm gets European regulator nod for fill-and-finish line for Semglee
* Sun Pharma gets South African regulator's nod to make Semaglutide injection
* Mylan exits Biocon, sells entire stake via block deals for INR 36.79 bln
* Natco Pharma completes acquisition of 13?ditional shr in Adcock Ingram
* Onesource Specialty partners with Germany-based Formycon to make biosimilars
* Emcure Pharma buys 12% stake in arm Gennova Biopharma for INR 2.32 bln
* Mankind Pharma sells entire stake in arm, incorporates one in Netherlands
* Emcure Pharma arm sells mRNA ops to Immunoscript Life for INR 1.4 bln
* JB Chem to be dropped from BSE indices following merger with Torrent Pharma
The 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 | 28055.00 | 3.30 | 28615.00 | 27165.00 |
| Alkem Laboratories | 5563.00 | (-)1.90 | 5773.70 | 5433.70 |
| Aurobindo Pharma | 1533.40 | (-)2.00 | 1564.20 | 1505.00 |
| Biocon | 437.20 | 4.50 | 449.80 | 426.50 |
| Cipla | 1418.70 | (-)1.40 | 1448.90 | 1388.90 |
| Divi's Laboratories | 7247.50 | 6.00 | 7371.20 | 7138.20 |
| Dr Reddy's Laboratories | 1211.20 | (-)2.70 | 1242.80 | 1185.40 |
| Gland Pharma | 2449.00 | (-)1.20 | 2578.30 | 2370.30 |
| GlaxoSmithKline Pharmaceuticals | 2454.80 | 0.70 | 2545.70 | 2384.50 |
| Glenmark Pharmaceuticals | 2235.50 | (-)2.10 | 2309.70 | 2191.90 |
| Granules India | 880.80 | (-)1.00 | 917.20 | 852.00 |
| Ipca Laboratories | 1900.60 | 6.30 | 1995.50 | 1799.30 |
| Laurus Labs | 1529.80 | (-)0.50 | 1577.70 | 1496.50 |
| Lupin | 2443.20 | (-)2.10 | 2515.20 | 2392.00 |
| Natco Pharma | 945.00 | (-)4.00 | 979.60 | 922.80 |
| Pfizer | 4566.90 | (-)3.50 | 4665.90 | 4453.10 |
| Sanofi India | 3414.20 | 0.40 | 3451.10 | 3351.70 |
| Sun Pharmaceutical Industries | 1932.60 | (-)0.20 | 1966.00 | 1905.80 |
| Torrent Pharmaceuticals | 4763.00 | (-)2.80 | 5034.80 | 4559.20 |
| Zydus Lifesciences | 1143.70 | (-)0.60 | 1167.00 | 1123.20 |
| Index | Levels | |||
| Nifty Pharma | 25645.00 | (-)0.10 | 26170.50 | 25286.50 |
| Nifty 50 | 24334.30 | 0.50 | 24535.10 | 23998.60 |
| S&P Bse Sensex | 78151.45 | 0.80 | 78888.60 | 76939.50 |
End
US$1 = INR 96.28
Reported by Eshitva Prakash
Edited by Saji George Titus
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