The Indian pharmaceutical industry is expected to expand at a compound annual growth rate (CAGR) of over 10 percent, reaching $130 billion by 2030 and potentially soaring to $450 billion by 2047.
Indian pharmaceutical stocks, holding over 47 percent of the U.S. market share, are seeing significant growth and sustained demand from the U.S. markets.
Here are three pharmaceutical stocks that have generated up to 100 percent returns year-to-date:
Glenmark Pharmaceuticals Limited
With a market capitalization of Rs.48,113 crore, Glenmark Pharmaceuticals Limited’s share has surged 100.77 percent year-to-date, climbing from Rs.855.65 per share on January 1 to a 52-week high of Rs.1,717.95 per share on August 27, 2024. The stock closed at Rs.1,700.15 per share on Friday.
A pivotal moment for Glenmark was selling its API business to Nirma Limited for around Rs.5,651 crore. This divestment allowed Glenmark to refocus on its core pharmaceutical operations, boosting investor sentiment. The company also reduced R&D spending on new chemical entities.
The successful launch and sales of Ryaltris, a nasal spray for seasonal allergic rhinitis, have greatly boosted revenue growth.
As of March 2024, Glenmark had 193 generic products approved for U.S. distribution and 52 applications awaiting FDA approval. This growth highlights robust market sentiment and the company’s strategic focus on the U.S. market, with 24 percent of revenue being derived from U.S. markets.
For Q1 FY25, Glenmark Pharmaceuticals’ North American revenue rose to Rs.780.8 crore, up 3.3 percent from Rs.755.7 crore in the previous quarter.
In Q1FY25, Glenmark reported a 7 percent year-on-year revenue increase to Rs.3,244 crore and a 96.5 percent rise in net profit to Rs.340 crore.
Lupin Limited
With a market capitalization of Rs.1 lakh crore, Lupin Limited’s share has surged 70 percent year-to-date, climbing from Rs.1,312.85 per share on January 1 to a 52-week high of Rs.2,226.2 per share on August 28, 2024. The stock closed at Rs.2,258 per share on Friday.
By March 2024, Lupin had become the third-largest pharmaceutical company in the U.S. by filling prescriptions, holding a 5.2 percent market share in the generic segment.
In FY2024, Lupin’s North American revenue was Rs.7,546.2 crore, a 23.7 percent increase from the previous year, and accounted for 37 percent of its global sales. In Q1 FY2025, the revenue rose to Rs.2,040.8 crore, up 7.4 percent from the previous quarter and 28.3 percent higher year-over-year, maintaining its 37 percent share of global sales.
With over 100 products in the pipeline across various therapeutic areas, Lupin is well-positioned to maintain its growth momentum. The company’s focus on complex generics and specialty products is expected to provide a competitive advantage.
In Q1FY25, Lupin Limited reported a 16.3 percent year-on-year revenue increase to Rs.5,600 crore and a 78 percent rise in net profit to Rs.806 crore.
Zydus Lifesciences Limited
With a market capitalization of Rs.1.14 lakh crore, Zydus Lifesciences Limited’s share has surged 90 percent year-to-date, climbing from Rs.699.15 per share on January 1 to a 52-week high of Rs.1,323.8 per share on August 9, 2024. The stock closed at Rs.1,099.5 per share on Friday.
On August 27, Zydus Lifesciences received US FDA approval for Amantadine extended-release capsules and Valbenazine capsules, both used to treat Parkinson’s disease symptoms.
In FY2024, Zydus Lifesciences’ US formulations revenue was Rs.8,750 crore, reflecting a 12 percent year-on-year growth due to strong demand and new product launches. In Q1 FY2025, the US revenue rose to Rs.3,083.718 crore, marking a 22.26 percent increase from the previous quarter, driven by continued demand and expanded product offerings.
The company also received tentative approval for Azilsartan Medoxomil tablets, used for hypertension, which had U.S. annual sales of $89 million.
Zydus’s acquisition of a 50 percent stake in Sterling Biotech for animal-free protein products positions the company to meet rising global demand for sustainable nutrition, potentially boosting its market presence in the U.S. and beyond.
In Q1FY25, Zydus Lifesciences reported a 21 percent year-on-year revenue increase to Rs.6,208 crore and a 31 percent rise in net profit to Rs.1,482 crore.
Written by – Siddesh S Raskar
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