UBS initiates Indian pharma coverage amid weight-loss drug opportunity

Cipla

25/03/2026 05:47

** UBS starts coverage of Indian pharmaceutical sector; says sector faces limited impact from Middle Eastern war given resilient demand, inventory buffers and strong balance sheets

** Brokerage says it expects generic semaglutide to be subject to intense pricing pressure driven by aggressive generic launches

** UBS estimates generic GLP-1 market opportunity to reach $7.6 billion by 2030 for Indian pharma companies and says Sun Pharma SUN.NS is best placed to capture this long-term opportunity

** Assumes coverage of SUN with "buy" rating, tags it preferred pick in the sector, as co well-positioned with innovative medicines and a robust pipeline to support earnings

** UBS assigns "neutral" to Cipla CIPL.NS and Aurobindo Pharma ARBN.NS and "sell" to Dr. Reddy's REDY.NS, Lupin LUPN.NS and Zydus Life ZYDU.NS

** Pharma index .NIPHARM up 1.8%, with SUN, CIPL rising 1.6% each and ARBN gaining 2.8%; REDY, LUPIN and ZYDU are up between 0.6% and 2.8%

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))