Pharma stocks gains up to 10%: What's fuelling the rally
Pharmaceutical stocks in India experienced a strong upswing today, with some companies experiencing gains of up to 10%. The Nifty Pharma index gained as much as 3.26%, reflecting the optimism in the sector. Glenmark, in particular, emerged as the biggest gainer, soaring to a day's high of 10.91% This boost came after S&P Global, a renowned rating agency, revised Glenmark's outlook to positive, primarily in response to the proposed stake sale in Glenmark Life Sciences (GLS).
Indian pharma companies eye US market opportunities
A report by Systematix Institutional Equities spotlighted a vast array of patent-expired drugs in the US that face limited or no generic competition. This presents a significant opportunity for generic drug manufacturers to enter the US market. If Indian companies can successfully develop copies of off-patent complex drugs, they could potentially generate incremental cumulative peak sales of $1,250 million. This would counterbalance the revenue erosion in their existing complex generic portfolios and solidify their standing in the global pharmaceutical market.
Aurobindo Pharma gains on Revlimid approval
Aurobindo Pharma shares jumped nearly 6% to an intraday high of Rs. 930 on the NSE. This surge was attributed to reports that the company had received approval to launch the Revlimid drug. Revlimid is used in combination with other medications for the treatment of adult patients with multiple myeloma, a type of cancer. This regulatory approval marked a significant milestone for the company and contributed to its upward momentum in the stock market.
Dr Reddy's Laboratories expands with new subsidiary
Dr Reddy's Laboratories's shares rallied over 3% following the announcement of a new step-down wholly-owned subsidiary. Dr Reddy's Switzerland unit has set up a new subsidiary in Jamaica, called Dr Reddy's Laboratories Jamaica Limited. As per a BSE notification, this new subsidiary will concentrate on imports, warehousing, distribution, and exports of drugs, further expanding Dr Reddy's global reach and potentially boosting its market share.
Widespread gains across pharma sector
The positive sentiment in the pharmaceutical sector was not limited to a few companies. Several other pharma companies, including Divi's Lab, Torrent Pharma, Alkem Lab, Biocon, Laurus Labs, Cipla, Sun Pharma, Gland Pharma, Zydus Lifesciences, GlaxoSmithKline Pharma, Granules, Shilpa Medicare, Wockhardt, Abbott India, IPCA Labs, Sanofi, and Panacea Biotec also witnessed gains of around 2% to 4%.
