Pharma stocks jump up to 5% after US Senate passes Biosecure Act: Check top gainers

Pharma stocks jump up to 5% after US Senate passes ‘Biosecure Act’: Check top gainers

The shares of pharma companies jumped in trade on December 19 after the US Senate passed the 'Biosecure Act', which bars some Chinese biotech companies from receiving federal funding.

The sharp rise in the share prices pushed the Nifty Pharma index up 0.65 percent to 22,704.30, as seen at 11.15 am on Friday. Earlier during the day, the index gained more than 1.35 percent to 22,863.

Biosecure Act:

The US Senate on Wednesday passed the fiscal 2026 National Defense Authorization Act, a nearly $1 trillion bill setting policy for the Pentagon that Congress has passed for 65 straight years. After the House of Representatives passed it last week, Senate's approval will send it to the White House for US President Donald Trump to sign and make it a law.

The NDAA includes the revised version of the 'Biosecure Act', which bars some Chinese biotech companies from receiving federal funding. This was first introduced in 2024, which earlier failed to get passed by the Congress. The BioSecure bill seeks to reduce China's influence from America's biotech supply chains and safeguard against biotech espionage.

India could be one of key beneficiaries as US tries to reduce China's influence, pushing the Indian pharma stocks higher up. Citi says latest version doesn't name specific firms, but defense department indicated a major Contract Development and Manufacturing Organization (CDMO) might be affected. The brokerage added this may potentially benefit Indian CDMOs, especially Divi's Laboratories.

According to global brokerage Macquarie, Divi's Laboratories is the front-runner, in terms of capacity creation, to benefit from the US Biosecure Act, considering that the company has a strong track-record of regulatory clearances and robust purification capabilities.

Piramal Pharma Chairperson Nandini Piramal said the Biosecure Act is a positive for India. "It does force our clients to think about Plan B. China is cheaper and faster. But at the board level, people are thinking about risk. They are thinking about when I should be manufacturing," she said while speaking to CNBC-TV18.

She added it is an opportunity for India, though it will take time.

Top pharma gainers today:

Wockhardt shares jumped 5 percent to trade at Rs 1,446.70 apiece, emerging as the top gainer on the Nifty Pharma index. Laurus Labs shares gained nearly 3 percent, while Divi's Laboratories shares rose around 2 percent.

Ajanta Pharma and Biocon shares rose more than 1 percent each, while Piramal Pharma, Aurobindo Pharma, Cipla and Gland Pharma shares gained nearly 1 percent each. Mankind Pharma, Lupin, Glenmark Pharmaceuticals, Zydus Lifesciences, Abbott India, Sun Pharmaceutical Industries, IPCA Laboratories and Dr. Reddy's Laboratories shares were trading in the green with marginal gains.

Bucking the trend, JB Chemicals & Pharmaceuticals, Alkem Laboratories and Torrent Pharmaceuticals shares were trading in the red with marginal losses.

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