Pharma stocks snap 3-day losses; Lupin rises 2% after Jefferies reiterates 'Buy' call

Pharma stocks snap three-day losing streak

The shares of pharma companies rose on November 25, pushing the Nifty Pharma index into the green to snap a three-session losing streak. Lupin shares were the top gainer on the index on bullish brokerage note from Jefferies.

The pharma index rose 0.74 percent to nearly 22,660, as seen at 12.05 pm.

Top gainers on the pharma index:

Lupin shares rose more than 2 percent to trade at Rs 2,047 apiece. Glenmark Pharmaceuticals, Dr. Reddy's Laboratories and Aurobindo Pharma shares followed, rising nearly 2 percent each.

Cipla shares rose more than 1 percent. IPCA Laboratories, Zydus Lifesciences and Torrent Pharmaceuticals shares gained nearly 1 percent each, while JB Chemicals & Pharmaceuticals, Mankind Pharma, Sun Pharmaceutical Industries, Laurus Labs, Divi's Laboratories and Ajanta Pharma shares were meanwhile trading in the green with marginal gains.

Bucking the trend, Alkem Laboratories, Biocon, Piramal Pharma, Abbott India, Gland Pharma and Wockhardt shares fell up to 1 percent.

Jefferies on Lupin:

Jefferies reiterated its 'Buy' call on Lupin shares with a target price of Rs 2,300 per share. This implies an upside potential of more than 15 percent from the stock’s previous closing price.

The international brokerage called Lupin's guidance of fiscal year 2026, which is US revenue of $1 billion and EBITDA margin expectations of 25-26 percent, as 'strong'. It further said that biosimilars segment is likely to be the next big growth engine for the company.

Lupin shares have gained nearly 7 percent in the past one month, and over 3 percent in the past six months. The stock is however down more than 13 percent in 2025 so far, after rallying around 130 percent in the past five years.

The stock's P/E ratio currently stands at over 24.

Dr. Reddy's gets European Commission’s nod for biosimilar of Prolia and Xgeva:

Dr. Reddy's Laboratories shares rose more than 1 percent after the company announced that the European Commission (EC) has granted marketing authorization for AVT03, a biosimilar of Prolia (denosumab) and Xgeva (denosumab).

Biosimilars are copies of costlier biological drugs used to treat major illnesses.

Prolia s a prescription medicine which is used to treat osteoporosis in women post menopause and in men who are at increased risk of fractures. Xgeva meanwhile is a prescription medicine which is used to prevent bone complications in adults with advanced cancer involving bone.

"In May 2024, Dr. Reddy's and Alvotech entered into a license and supply agreement for the commercialization of AVT03. Under the agreement, Alvotech will develop and manufacture AVT03, while Dr. Reddy's is responsible for registration and commercialization in applicable markets, including the U.S. and Europe. Dr. Reddy’s commercialization rights are exclusive for the U.S., and semi-exclusive for Europe and the UK. Upon approval Dr. Reddy's will offer the biosimilar under the tradenames Acvybra (denosumab) 60 mg/mL solution for injection in a pre-filled syringe and Xbonzy (denosumab) 70 mg/mL solution for injection in a vial," the company said.

Dr. Reddy's shares have fallen more than 3 percent in the past one month, but made marginal gains in the past six months. The stock is down more than 9 percent in 2025 so far, after rising 29 percent in the past five years.

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