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Mint
06-06-2025
- Business
- Mint
Missed the pharma rebound? Gland Pharma, Cipla among 8 stocks that jumped up to 28% since April
Pharma stocks have made a big comeback in recent months, with companies such as Granules India, Gland Pharma, Dr. Reddy's Laboratories, Natco Pharma, Aurobindo Pharma, and Cipla rebounding sharply from their April lows, emerging as some of the top turnaround champions in the 2025 market recovery. Granules India led the pack with a 28% recovery from its April low of ₹ 422 apiece, now trading at ₹ 533. Gland Pharma followed with a 27.8% rise to ₹ 1,633 apiece. Likewise, shares of Dr. Reddy's Laboratories have gained 26%, while JB Chemicals & Pharmaceuticals, Zydus Lifesciences, Natco Pharma, Aurobindo Pharma, and Cipla have recovered in the range of 11.5% to 23%. The strong recovery in the select counters has boosted the Nifty Pharma index to regain 13% from April lows. The recent rebound in pharma stocks has been driven by a combination of sector-specific tailwinds, improving global trade sentiment, and renewed investor appetite for risk. Additionally, attractive valuations at lower levels have also encouraged value buying, leading to a notable turnaround in several key counters. Notably, investor sentiment toward pharma stocks received a boost after the US government excluded generic drugs from the Most Favored Nation (MFN) Pricing Policy. In mid-May, US President Trump signed Executive Order 14297 to implement the MFN policy, which aimed to lower US prescription drug prices by benchmarking them against the lowest prices in other developed countries. However, the US Department of Health and Human Services later clarified that generics would be exempt from these price cuts, a significant relief for Indian biosimilar and generic drug manufacturers, for whom the US remains a key export market. India exports 54% of its pharmaceutical production, and nearly one-third of this goes to the United States. Of the exports to the US, about 85% comprise formulations, primarily generics, while sales from biosimilars and innovator drugs remain low, according to credit rating agency Crisil. Generic drugs account for 90% of prescription sales volume in the US but represent only 13% of total prescription spending. The agency also noted that generic drug prices in the US are among the lowest globally, even compared to economically comparable countries. Meanwhile, India has proposed a range of measures as part of the ongoing trade negotiations with the US, placing the pharmaceutical sector at the center of the discussions. Mint earlier reported, citing two people familiar with the matter, that India's proposals include the supply of low-cost complex generic medicines at sharply reduced prices, patent reforms to allow earlier entry of generics into the US, increased US-based manufacturing by Indian pharma firms of active pharmaceutical ingredients (APIs) and fixed dosage forms (FDFs), and tariff exemptions for life-saving and critical medicines imported into India from the US. The pharmaceutical sector delivered a turnaround performance in the quarter ending March, driven by strong growth in the India business. Companies covered by the domestic brokerage firm Axis Securities reported a growth of 11.5% YoY and 1.6% QoQ in the Q4FY25. Gross margins improved to 66.1%, reflecting a 95 bps increase YoY and a 40 bps rise QoQ. This improvement was supported by the launch of niche products, low single-digit price erosion, a higher contribution from the Indian business in the product mix, and stable raw material prices. On a QoQ basis, the US business stood at $2,240 million, showing 7.7% YoY growth in constant currency (CC) terms, driven by volume growth in the base portfolio and moderate performance from the top drug (gRevlimid). In the domestic market, the Indian Pharmaceutical Market (IPM) recorded 8% YoY growth in Q4FY25. Overall, the brokerage anticipates a strong pipeline in segments such as biosimilars, GLP-1, and peptides over the next three years. Companies with a higher share of chronic portfolios are outperforming the IPM. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
India Gazette
05-06-2025
- Business
- India Gazette
India and Kyrgyzstan's BIT comes into force, strengthen economic ties
New Delhi [India], June 5 (ANI): The new Bilateral Investment Treaty (BIT) between India and the Kyrgyz Republic comes into force on Thursday, marking a significant milestone in their bilateral economic relations. Union Minister for Finance and Corporate Affairs Nirmala Sitharaman and Minister of Foreign Affairs of the Kyrgyz Republic, Zheenbek Kulubaev Moldokanovich signed the Protocol and exchanged Instrument of Ratification of the Bilateral Investment Treaty (BIT) in New Delhi. According to Ministry of Finance, 'the Bilateral Investment Treaty (BIT) signed on 14th June, 2019, in Bishkek, between the Government of the Republic of India and the Government of the Kyrgyz Republic, enters into force with effect from today, i.e. 5th June 2025. This new BIT replaces the earlier agreement enforced on 12th May 2000, ensuring continuity in the protection of investments between the two nations.' The aim of this BIT is to promote and protect the interests of investors from both countries within each other's territories. The treaty incorporates several key features designed to create a balanced framework for investment. It highlights that the importance of sustainable development. Additionally, it also provides an enterprise-based definition of assets with an indicative inclusion list and a specific exclusion list, clarifying characteristics of investments such such as capital commitment, expectation of gain, risk assumption, and significance for the host state's development The treaty excludes matters relating to local government, government procurement, taxation, services supplied in the exercise of governmental authority, and compulsory licenses, thereby retaining sufficient policy space for the government. The BIT defines the core elements of the Treatment of Investment, aligning with customary international law, and includes provisions on national treatment, expropriation, and transfers. It also focus on matter related to removal of Most Favored Nation (MFN) clause, general and security exceptions and calibrated investor-state dispute settlement. 'The BIT balances the investor rights with the sovereign regulatory powers of both countries, and reflects a shared commitment to create a resilient and transparent investment climate. It is expected to further encourage cross-border investments and deepen economic cooperation between India and Kyrgyzstan,' the minstry of Finanace said. (ANI)
Gulf Insider
26-05-2025
- Business
- Gulf Insider
Why Are Prescription Drug Prices So High in America? A Global Price Comparison
Prescription drugs cost more in the United States than anywhere else in the world. President Donald Trump and some bipartisan senators want to change that. Trump has so far issued several actions related to prescription drug prices. The latest, announced May 12, is a Most Favored Nation Prescription Drug policy, requiring pharmaceutical companies to offer their lowest price to U.S. customers. An earlier order aimed to ensure that the middlemen in the drug supply chain can't hold on to rebates provided by pharmaceutical companies and instead must pass savings on to Medicare beneficiaries. In all, the president has taken at least a dozen actions to reduce prescription drug costs, while no less than nine Senate bills aim for the same results. Some of these ideas have been introduced before. Trump's Most Favored Nation pricing plan was introduced near the end of his first term. The plan was stalled by court challenges, and President Joe Biden dropped it shortly after taking office. A plan to make vendors pass manufacturer discounts on to Medicare beneficiaries was proposed in 2020. Biden rescinded it before it took effect. There have been modest successes, including a pilot program begun by Trump in 2020 to cap insulin costs for Medicare Part B beneficiaries at $35 per month. At the time, a single vial of insulin cost about $100 in the United States. That program was a success, and the idea was later broadened to include all Medicare beneficiaries through the Inflation Reduction Act of 2022. By 2024, most major drug companies had voluntarily limited out-of-pocket expenses for insulin for all U.S. customers to $35. Yet Americans still pay nearly three times as much for prescription medication as any peer nation, often even more. Trulicity, a medication for Type 2 diabetics, was listed for $67 in France, according to a 2021 Government Accountability Report. In the United States, it cost $798. Meanwhile, Remlivid, an oral cancer medication, was listed for $4,723 in Australia. In the United States, it was listed at almost five times that price: $22,048. Gross prices given in U.S. dollars Drug Name United States Australia Ontario, Canada France Xarelto Oral Tablet 15mg 471 64 78 67 Trulicity Subcutaneious Solution 1.5mg, 5ml 798 Not Covered Not Covered 89 Tremfya Subcutaneous Solution 100mg / 1ml 11,437 2,594 Not Covered 1,991 Remlivid Oral Capsule 5mg 22,048 4,723 7,716 Not Covered Why? One answer is that other governments leverage the power of their national health plans to control pricing, while the United States lacks a comprehensive national prescription drug strategy. The solution, according to at least one senator, is to stop putting patches on a broken system and take a comprehensive approach to regulating the entire pharmaceutical supply chain. Some nations can negotiate low prices for prescription drugs because they have national health care plans, which gives them near complete control over the drug market. Here's how that works for some, according to the Government Accountability Office. Australia has a national health care system that is partly administered by state, territorial, and local governments. Prescription drug pricing is set at the national level, starting with an assessment of the drug's value. That assessment is made by Australia's independent Pharmaceutical Benefits Advisory Committee, which evaluates new drugs for cost-effectiveness and may recommend them for inclusion on the list of approved medications under the national health plan. That decision is made by Australia's national minister of health, who then negotiates with the manufacturer to determine a price. Among other considerations, the health minister evaluates the impact of adding the drug on the country's budget. Canada keeps prescription prices low in two ways. First, Canada's federal government sets a maximum allowable price for each medication. The government bases this price, in part, on the therapeutic value of the drug. That value may be higher if the drug is the first of its kind, or lower if there are similar drugs already on the market. Second, the country's 13 provincial and territorial health plans negotiate pricing jointly with manufacturers, combining the power of their respective markets. France has a national health care system that includes prescription drugs. The French government negotiates prices with manufacturers based on an assessment of the therapeutic value of the drug. The country also places a cap on total prescription spending. These arrangements significantly lower prescription costs for the government and for patients. But there are drawbacks. When a U.S. insurance company can't negotiate an acceptable price from a drug manufacturer, the insurer may choose not to cover the drug. However, another company will often cover it, so patients still have options. However, when a drug is omitted from a national health plan, it may be more difficult to find it or afford it anywhere in that country. For example, Signifor, a drug used to treat hormonal diseases, was not available in Ontario, Canada, according to a 2021 study by the Government Accountability Office. Some forms of diabetes drug Trulicity were not available in Australia. Cancer medicine Revlimid 5 milligram and 10 milligram capsules were not available in France. Or, drugs left off the national coverage list may still be available, but at a higher price. Drug shortages are another problem. In countries with national health plans, pharmaceutical companies have less incentive to ensure supply. Companies will favor markets where there is more potential for profit. '[Drug] shortages are a natural outcome of imposing prices divorced from free market processes,' Jeremy Nighohossian, a senior fellow at the Competitive Enterprise Institute, a libertarian think tank, told The Epoch Times. Stephen Ubl, president and CEO of Pharmaceutical Research and Manufacturers of America, said, 'Importing foreign prices from socialist countries would be a bad deal for American patients and workers,' in a May 12 response to Trump's plan.
Business Upturn
23-05-2025
- Business
- Business Upturn
Citi maintains ‘Buy' on Sun Pharma post Q4 with target price of Rs 2,220; bets on specialty push despite EPS cut
By Markets Desk Published on May 23, 2025, 08:08 IST Citi has maintained its 'Buy' rating on Sun Pharmaceutical Industries with a target price of ₹2,220, noting that Q4FY25 results were largely in line with expectations. The brokerage remains optimistic about Sun's strategic pivot toward specialty therapies despite short-term EPS dilution. Sun Pharma reported a 19% year-on-year decline in net profit to ₹2,153.9 crore, impacted by an exceptional loss of ₹361.6 crore. However, operationally, the company delivered solid growth — EBITDA rose 22.4% YoY to ₹3,715.9 crore, with margin expanding to 28.7% from 25.3% last year. Citi pointed out that strength in India and emerging markets offset weakness in the US generics portfolio. Specialty revenue softness was anticipated due to channel filling and milestone-driven upsides in Q3, which had been flagged by the management earlier. Citi was encouraged by management's positive commentary on the Most Favored Nation (MFN) pricing impact, which had been seen as a key overhang for the sector. While Sun's FY26 revenue guidance of mid-to-high single-digit growth reflects caution in light of regulatory and geopolitical uncertainties, the planned $100 million investment in launches like Leqselvi and Unloxcyt signals a ramp-up in the specialty business. Despite a 6% cut in FY26 EPS estimates, Citi believes the investments are necessary to build long-term value. Disclaimer: This article is based on the brokerage report by Citi. It does not constitute investment adv Markets Desk at
Yahoo
21-05-2025
- Business
- Yahoo
Citi Maintains a Hold Rating on Pfizer (PFE) Amidst Pricing Policy Headwinds
On May 21, analyst Geoff Meacham of Citi maintained a Hold rating on Pfizer Inc. (NYSE:PFE), reiterating the price target of $25. The analyst acknowledged the strong Q1 2025 performance of the company. However, he remains cautious due to the potential Most Favored Nation (MFN) pricing policy headwinds. A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution. The Most Favored Nation (MFN) pricing policy is a government initiative in the United States to lower prescription drug prices to ensure that the prices paid by US government programs do not exceed the lowest prices paid by comparable developed countries. This policy has resurfaced under the Trump administration in 2025. The Trump administration argues that this policy will result in US drug prices dropping by 30% to 80%. During the first quarter 2025 earnings call, Dave Denton, CFO of Pfizer Inc. (NYSE:PFE), noted the changes in the IRA Medicare Part D redesign, tempered US revenue. The IRA Medicare Part D is another government initiative aimed at cutting drug prices. Analyst Meacham noted that although the company is actively pursuing opportunities in oncology and cardio-metabolic assets, the market remains overvalued. Thereby requiring a disciplined approach to business development. Moreover, the pricing policy headwinds present challenges that Pfizer Inc. (NYSE:PFE) has to navigate carefully, thereby justifying the Hold rating. While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PFE and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None
