Pharma stocks rise up to 6% amid defensive buying, strong product pipeline; Mankind Pharma, Wockhardt lead…

According to fresh market updates, Shares of pharmaceutical firms traded with positive sentiment for third straight day on September 21 with Mankind Pharma, Wockhardt leading upside.

Apart from the ongoing defensive buying in the sector, upcoming launch pipelines and regulatory approval for new drugs is leading to a structural change in the sector.

The pharma sector recently saw defensive buying amid volatility in the equity market due to macroeconomic concerns. Recently, Dr Reddy's Laboratories signed an agreement with Takeda Biopharmaceuticals India, the Indian arm of Japanese major Takeda Pharmaceutical Co., to exclusively distribute India's first dengue vaccine, Qdenga, in the private market.

The Nifty Pharma and Nifty Healthcare rose over 1% each, the top gainers among sectoral indices. More than half of the constituents of the Nifty Pharma index traded elevated. Nifty 50 pharma players Sun Pharmaceutical Industries and Dr. Reddy's Laboratories rose around 2% each. Mankind Pharma, Wockhardt, and Laurus Labs advanced 3–6%. The sectoral index rose over 3% in three sessions.

Geojit Investments retained its 'Buy' rating on Sun Pharma and gave a target price of Rs 2,070, which implies upside of up to 10.5% from current market price.

"The recent approval of semaglutide in multiple markets, steady performance of its flagship brands such as Ilumya and progress in the commercialisation of new specialty products highlight its focus on innovation-led expansion. The proposed Organon acquisition is anticipated to broaden its therapeutic presence through the Women's Health and Biosimilars portfolios while further enhancing its global reach. Hence, we retain our BUY rating on the stock, with a revised target price of Rs 2,070, based on 30x FY28E adj. EPS," stated the domestic brokerage.