Pharmaceutical stocks are facing a challenging day in the market, with the Nifty Pharma Index experiencing a decline of 0.74% and the BSE Healthcare Index down by 0.53%. Key players such as Ajanta Pharma, Mankind, Torren Pharma, Lupin, and Cipla have seen their shares dip between 2% and 4% during intra-day trading. Amidst this downturn, Nomura has released a report analyzing sales and prescription trends in the pharmaceutical sector, revealing some promising investment opportunities.

Key Pharma Stocks Recommended by Nomura

Dr. Reddy’s: A Promising Buy

Nomura has issued a Buy recommendation for Dr. Reddy’s, setting an optimistic target price. Over the last year, the company has struggled with market share in significant generic products like Suboxone, Vascepa, and Ciprodex due to heightened competition. However, Nomura notes that market share has stabilized and even showed slight improvement in the March 2025 quarter. With the recent launch of Liothyronine tablets in June 2024, Dr. Reddy’s has become a dominant player in the U.S. market, boasting a 32% market share.

Cipla: Recovery on the Horizon

Cipla is also highlighted in Nomura’s report as a stock to consider. The company has seen its market share for Albuterol bounce back to 19% as of March 2025, recovering from a dip to 17% in January of the same year. Furthermore, Cipla’s sales volume for Lanreotide injection stands at 13% with a 16% market share. The company anticipates a return to pre-disruption supply levels by the first quarter of FY26E.

Lupin: Strong Market Position

Another stock on Nomura’s radar is Lupin, which is receiving a Buy rating. The company’s market share for gSpiriva has risen to 34% from a steady 29-30% between January and March. Although Albuterol saw a slight decrease in market share to 18%, Lupin is making strides with new launches. Their gPredForte product, which has a market potential of $200 million, achieved a market share surge to 17% in March from just 5% in January.

Zydus: Navigating Legal Challenges

Zydus is another stock with a Buy recommendation from Nomura. The report mentions ongoing litigation concerning the formulation patent for gMyrbetriq, which could create uncertainties for Zydus and Lupin’s sales in the short term. However, Nomura believes that despite these challenges, there is potential for sales growth in FY26, with increased estimates for FY26 and FY27. Notably, Zydus has increased its market share for the gOrthoEvra transdermal patch to 37%.

Conclusion

While the pharmaceutical sector is currently facing some turbulence, opportunities for investment remain strong, particularly in companies like Dr. Reddy’s, Cipla, Lupin, and Zydus. As these firms adapt to market changes and overcome challenges, their strategic moves may pave the way for recovery and growth in the coming quarters. For investors, staying informed and considering these insights could lead to fruitful opportunities in the pharma landscape.