The recent softness in the US Biosecure Act is poised to impact several Indian companies, particularly the pharmaceutical and biotechnology sectors. As the Act aims to limit US partnerships with specific Chinese biotech firms, Indian companies like Divi’s Labs, Neuland Labs, and Piramal Pharma stand to gain from increased business opportunities. However, uncertainties surrounding the Act’s implementation may lead to volatility in stock prices. While the legislation presents a chance for Indian firms to expand their market share. The potential delays raise concerns about challenges in competition in the US Market from Chinese Pharma companies.
Listed below are some of the stocks in focus on softening the US Biosecure Act affecting Indian Pharma CDMO stocks.
Divi’s Laboratories is headquartered in Hyderabad. It is a leading Indian pharmaceutical company specializing in the production of Active Pharmaceutical Ingredients (APIs), intermediates, and nutraceutical ingredients. They operate two manufacturing facilities and serve over 100 countries, focusing on generic APIs and custom synthesis for global innovator firms.
With a market capitalization of Rs. 1,57,342 Crores, the shares of Divi’s Laboratories Limited closed at Rs. 5,938.80 per equity share, down 0.35 percent from its previous day’s close price of Rs. 5,959.75.
Its Revenue from operations grew by 22.50 percent from Rs. 1,995 Crores in Q2FY24 to Rs. 2,444 Crores in Q2FY25, accompanied by profits of Rs. 348 Crores to Rs. 510 Crores.
Neuland Laboratories was founded in 1984 and is based in Hyderabad. They specialize in manufacturing Active Pharmaceutical Ingredients (APIs) and providing end-to-end chemistry solutions for the pharmaceutical industry. The company operates two FDA-inspected facilities, serving clients in over 85 countries.
With a market capitalization of Rs. 21,616 Crores, the shares of Neuland Laboratories Limited closed at Rs. 16,848 per equity share, down 1.16 percent from its previous day’s close price of Rs. 17,046.20.
Its Revenue from operations declined by 25 percent from Rs. 420.8 Crores in Q2FY24 to Rs. 315.17 Crores in Q2FY25, accompanied by profits of Rs. 89.25 Crores to Rs. 32.84 Crores.
Syngene International is a leading integrated contract research, development, and manufacturing organization based in Bangalore, India. The company was established in 1993 and provides comprehensive scientific services, including drug discovery, development, and commercial manufacturing, primarily for the pharmaceutical and biotechnology sectors.
With a market capitalization of Rs. 35,588.29 Crores, the shares of Syngene International Limited closed at Rs. 884.10 per equity share, up 1.92 percent from its previous day’s close price of Rs. 867.45.
Its Revenue from operations declined by 2.6 percent from Rs. 931.7 Crores in Q2FY24 to Rs. 907.5 Crores in Q2FY25, accompanied by a profit of Rs. 116.5 Crores to Rs. 106.10 Crores.
Piramal Pharma which is a part of the Piramal Group and specializes in integrated pharmaceutical solutions, offering services across the drug lifecycle. Their business model includes Piramal Pharma Solutions, a Contract Development and Manufacturing Organization (CDMO), and Piramal Critical Care, focusing on hospital generics.
With a market capitalization of Rs. 34,270.59 Crores, the shares of Piramal Pharma Limited closed at Rs. 258.50 per equity share, up 1.08 percent from its previous day’s close price of Rs. 255.75.
Its Revenue from operations increased by 17.45 percent from Rs. 1,960.57 Crores in Q2FY24 to Rs. 2,302.86 Crores in Q2FY25, accompanied by a profit of Rs. 5.02 Crores to Rs. 22.59 Crores.
Laurus Labs was founded in 2005 and is headquartered in Hyderabad. They are a leading pharmaceutical company specializing in Active Pharmaceutical Ingredients (APIs) and Finished Dosage Forms (FDFs).
With a market capitalization of Rs. 30,737.47 Crores, the shares of Laurus Labs Limited closed at Rs. 570.10 per equity share, down 0.35 percent from its previous day’s close price of Rs. 572.10.
Its Revenue from operations increased by 0.16 percent from Rs. 1,226.23 Crores in Q2FY24 to Rs. 1,228.30 Crores in Q2FY25, accompanied by a profit of Rs. 36.95 Crores to Rs. 19.84 Crores.
Written by Santhosh S
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