Indian pharma stocks drop as Macquarie flags concerns around increased competition in US generics

Aurobindo Pharma

08/07/2025 07:49

** Indian pharma stocks .NIPHARM drop 1.5%, top loser among 13 major sectors while benchmark Nifty 50 .NSEI index trades flat

** Macquarie says shifting dynamics in U.S. generics space makes it "cautious"

** Adds, price erosion in U.S. generics could accelerate due to easing drug shortages and more competition

** Seventeen of 20 stocks on index trading in red with losses led by Aurobindo Pharma's ARBN.NS 4.4% drop

** Cipla CIPL.NS, Dr Reddy's REDY.NS and Lupin LUPN.NS decline between 2% and 3%

** Sun Pharma SUN.NS and Biocon down 1.4% each

** Q1 results for most Indian generic drugmakers could be adversely impacted by increased competition in supply of gRevlimid, a key contributor to their revenues - Macquarie

** Brokerage's actions on ratings and PT cuts:

Company
Old Rating
New Rating
Old PT (rupees)
New PT (rupees)
Lupin
outperform
outperform
2,515
2,350
Cipla
outperform
outperform
1,875
1,700
Zydus Life
outperform
outperform
1,365
1,110
Aurobindo Pharma
outperform
underperform
1,700
1,010
Dr Reddy's Laboratories
outperform
neutral
1,450
1,190

 (Reporting by Kashish Tandon in Bengaluru)

 ((Kashish.tandon@thomsonreuters.com))