Latest news with #NiftyPharmaIndex
Mint
4 days ago
- Business
- Mint
Nifty Pharma Index rises 1% amid weak India Stock Markets: Cipla and Laurus Labs among key gainers
Stock Market Today: The Nifty Pharma Index gained more than 1% amid a weak Indian stock market on a day when the benchmark Nifty 50 Index dipped 0.3-0.4% during the intraday trades. Cipla and Laurus Labs stood among the key gainers The Nifty Pharma index, showing its resilience, gained more than 1% during the intraday trades. The Nifty Pharma Index, which opened at 22690.50 on Monday, went to scale highs of 22,908.40, marking gains of more than 1% over the previous day's close of 22662.70. Laurus Labs, with gains of more than 7%, followed by Cipla, with gains of close to 2%, stood among key gainers. Glenmark Pharmaceuticals and Gland Pharma also gained more than 1%, helping drive gains. Nifty Pharma and Healthcare index have been showing resilience amid volatile stock markets since last few weeks While Nifty Pharma & Healthcare are the lone warriors displaying outperformance amidst this downfall in the markets, we expect sectors such as IT, Defense, Oil & Gas, Realty & CPSE to appear bearish and may continue to underperform in the near term, given their weak price structures and lackluster momentum indicators., said Sudeep Shah, Vice President and Head of Technical and Derivative Research, SBI Securities Technically, Cipla, Apollo Hospital are likely to outperform in the short term, as per Shah. The Indian Pharma index performance is also being helped by strong Indian Pharma market growth. The IPM growth during the month of June 2025 stood at a strong 11.5%, as per reports. Glemmark Pharmaceuticals, JB Chemicals and Pharmaceuticals, Mankind Pharma FDC Ltd, Alkem, Zydus, and Torrent were among the key outperformers as per Nuvama. While the pharma market is growing, the challenge is provided by rising generic sales and Jan Aushadhi Kendras. However, amidst challenges, Within formulations, Sun, Cipla, Lupin and Emcure are the top picks. of Kotak Institutional Equities Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
18-06-2025
- Business
- Business Standard
Pharma majors turn to acquisitions as cash stockpile hits ₹49,000 crore
India's largest pharmaceutical companies have built up a record cash reserve of ₹48,913 crore as of March 31, more than double the ₹22,240 crore they held in FY20, according to data analysed by Moneycontrol. The 20 firms that make up the Nifty Pharma Index added over ₹10,200 crore in FY25 alone, signalling a shift in how capital is being allocated. This stockpile is being used to fund overseas acquisitions, expand into complex therapies and build buffers against trade and regulatory risks, particularly in the US, which accounts for nearly 30 per cent of India's annual pharma exports, valued at around ₹2.5 trillion. Indian drugmakers focus on mergers and acquisitions Drugmakers are already using these funds towards significant merger and acquisition activity. Sun Pharmaceutical Industries, India's largest drugmaker, recently acquired US-listed Checkpoint Therapeutics for $355 million (about ₹3,064 crore), expanding its footprint in immuno-oncology and complex therapies. Meanwhile, Mankind Pharma acquired Bharat Serums for ₹13,768 crore in a bid to strengthen its biologics and women's health portfolio. Strong balance sheets support pharma growth strategy Analysts cited by the report suggest that most of these companies remain largely debt-free and continue to generate robust operating cash flows, making them well-positioned to sustain margins in the 24-25 per cent range through inorganic growth and product innovation. Despite the increase in cash, net debt across the Nifty Pharma group rose to ₹11,782 crore from ₹4,014 crore in March 2024, suggesting that companies are borrowing selectively to fund capex and acquisitions while preserving liquidity for longer-term bets. The shift in financial posture is part of a longer transition from a generics-dominated model to innovation-led growth. Developing complex biologics can cost upwards of $200 million, requiring upfront capital and sustained investment. Sun Pharma is leading this pivot, while others like Zydus Lifesciences, Dr Reddy's, Lupin and Alkem are also investing in consumer health, diagnostics and contract manufacturing.
Time of India
13-05-2025
- Business
- Time of India
Pharma Cos Slip on US Move to Cut Prices
HighlightsSeveral pharmaceutical shares, including Sun Pharmaceuticals and Ajanta Pharma, underperformed on a day when the broader market saw a nearly 4 percent rally, following President Donald Trump's announcement of plans to cut US prescription drug prices by 30 to 80 percent. The Nifty Pharma Index, despite a 0.2 percent increase on the day, is down 10 percent year-to-date, contrasting with a 5 percent gain in the benchmark Nifty Index. Analysts suggest that while the proposed executive order primarily affects the branded drugs segment, which comprises 90 percent of the US market, Indian pharmaceutical companies mainly operate in the generics market, thus facing limited risks from these changes. Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30 per cent to 80 per cent. Sun Pharmaceuticals fell 3.2 per cent, Ajanta Pharma slipped 2.3 per cent, and Glenmark and Divi's Labs lost over 1 per cent each. Biocon dipped 0.5 per cent. The Nifty Pharma Index ended 0.2 per cent higher Monday after tumbling almost 2.4 per cent earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4 per cent—posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined. 'The order implies a 30-80 per cent expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins,' said Nikhil Ranka, CIO at Nuvama Alternates. 'That's why companies like Sun Pharma, which derives around 40 per cent revenues from the US, saw declines.' Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. 'Pharma stocks could resume their uptrend in the coming sessions,' he said. Year-to-date, the Nifty Pharma Index is down 10 per cent, compared with a 5 per cent gain in the benchmark Nifty. Bhavesh Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90 per cent of the US market. Indian companies cater mostly to the remaining 10 per cent — the generics space — where prices are already low. 'Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up,' Gandhi said.
Economic Times
13-05-2025
- Business
- Economic Times
Pharma stocks decline amid Trump's prescription drug price cuts announcement
"Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi said. Synopsis The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined. Mumbai: Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30% to 80%. ADVERTISEMENT Sun Pharmaceuticals fell 3.2%, Ajanta Pharma slipped 2.3%, and Glenmark and Divi's Labs lost over 1% each. Biocon dipped 0.5%. The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined. "The order implies a 30-80% expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins," said Nikhil Ranka, CIO at Nuvama Alternates. "That's why companies like Sun Pharma, which derives around 40% revenues from the US, saw declines."Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. "Pharma stocks could resume their uptrend in the coming sessions," he the Nifty Pharma Index is down 10%, compared with a 5% gain in the benchmark Nifty. ADVERTISEMENT Bhavesh Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90% of the US market. Indian companies cater mostly to the remaining 10% - the generics space - where prices are already low."Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi said. ADVERTISEMENT India Ratings and Research said Trump's executive order to reduce the prices of prescription drugs in the US, once implemented, will have a limited near-term impact on the Indian pharma companies, but it may have a bearing on their long-term capital allocation strategies. Most Indian companies operate on thin margins in the generic drugs segment, which limits scope for further price reductions. The proposed cuts are more likely to target the branded drugs segment, said analysts. 'Volumes may remain stable, but lower prices could squeeze margins and weigh on share prices,' said Dharmesh Kant, head of research at Cholamandalam Securities. He expects firms such as Sun Pharma, Aurobindo Pharma, and Cipla to be affected, though the extent of the impact is still uncertain. (You can now subscribe to our ETMarkets WhatsApp channel) Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains How Pi42 is simplifying crypto trading: CTO Satish Mishra on integrating technical & fundamental insights NEXT STORY
Time of India
13-05-2025
- Business
- Time of India
Pharmaceutical shares decline: Pharma stocks decline amid Trump's prescription drug price cuts announcement
ADVERTISEMENT ADVERTISEMENT Mumbai: Several pharmaceutical shares underperformed on Monday despite a strong broad market rally, after US President Donald Trump announced plans to sign an executive order slashing prescription drug prices in the US to match those in favoured nations, implying cuts of 30% to 80%.Sun Pharmaceuticals fell 3.2%, Ajanta Pharma slipped 2.3%, and Glenmark and Divi's Labs lost over 1% each. Biocon dipped 0.5%.The Nifty Pharma Index ended 0.2% higher Monday after tumbling almost 2.4% earlier in the day in response to Trump's remarks. The Sensex and Nifty jumped nearly 4%-posting their biggest single-day gains in four years. Of the 20 stocks in Nifty Pharma, 13 gained and seven declined."The order implies a 30-80% expected cut to align US drug prices with other regulated markets. But such cuts are commercially unviable for pharma firms, especially those with low-double-digit margins," said Nikhil Ranka, CIO at Nuvama Alternates. "That's why companies like Sun Pharma, which derives around 40% revenues from the US, saw declines."Ranka said most pharma stocks rebounded after an initial knee-jerk reaction, as the proposed changes are not expected to be immediately enforceable or impactful. "Pharma stocks could resume their uptrend in the coming sessions," he the Nifty Pharma Index is down 10%, compared with a 5% gain in the benchmark Gandhi, lead analyst for pharma and healthcare at YES Securities, said the proposed policy primarily targets the branded drugs segment, which accounts for 90% of the US market. Indian companies cater mostly to the remaining 10% - the generics space - where prices are already low."Sun Pharma, with some exposure to the branded segment, may face limited risk. But for now, the reaction is largely sentimental, and the real impact will depend on how earnings shape up," Gandhi Ratings and Research said Trump's executive order to reduce the prices of prescription drugs in the US, once implemented, will have a limited near-term impact on the Indian pharma companies, but it may have a bearing on their long-term capital allocation strategies. Most Indian companies operate on thin margins in the generic drugs segment, which limits scope for further price reductions. The proposed cuts are more likely to target the branded drugs segment, said analysts.'Volumes may remain stable, but lower prices could squeeze margins and weigh on share prices,' said Dharmesh Kant, head of research at Cholamandalam Securities. He expects firms such as Sun Pharma, Aurobindo Pharma, and Cipla to be affected, though the extent of the impact is still uncertain.
