Pharma stocks bounced back on November 25, ending a three-session losing streak and lifting the Nifty Pharma index into positive territory. The overall sentiment improved after a fresh brokerage note from Jefferies turned the spotlight on Lupin, which emerged as the top gainer on the index.

Contents

Nifty Pharma Index Rises After Recent Weakness Lupin Leads Gains After Jefferies’ Bullish Call Broad-Based Gains Across Pharma Counters Regulatory Boost for Dr. Reddy’s Dr. Reddy’s Stock Performance

Nifty Pharma Index Rises After Recent Weakness

By 12:05 pm, the Nifty Pharma index was up 0.74%, trading near 22,660. This relief rally came after three consecutive days of decline, offering some stability to investors tracking the sector.

Shares of several leading pharmaceutical companies moved higher, with multiple heavyweights contributing to the index’s recovery.

Lupin Leads Gains After Jefferies’ Bullish Call

Lupin was the strongest performer on the index.

Lupin shares surged over 2%, trading at ₹2,047 apiece.
The stock gained momentum after Jefferies reiterated its ‘Buy’ rating with a target price of ₹2,300.
This target signals an upside potential of over 15% from the previous close.

Jefferies highlighted that the biosimilars segment is poised to become the next major growth engine for Lupin, which boosted investor confidence around the stock.

Broad-Based Gains Across Pharma Counters

Several major pharma companies joined the uptrend:

Glenmark Pharma, Dr. Reddy’s Laboratories, and Aurobindo Pharma gained nearly 2% each.
Cipla rose over 1%, while IPCA Laboratories, Zydus Lifesciences, and Torrent Pharma were up nearly 1%.

Other notable names, such as JB Chemicals, Mankind Pharma, Sun Pharma, Laurus Labs, Divi’s Labs, and Ajanta Pharma, traded in the green with marginal gains.

However, not all stocks participated in the rebound.
Alkem Laboratories, Biocon, Piramal Pharma, Abbott India, Gland Pharma, and Wockhardt slipped up to 1%, bucking the broader trend.

Regulatory Boost for Dr. Reddy’s

Dr. Reddy’s Laboratories also attracted attention, rising more than 1% after the company received a significant regulatory approval.

The European Commission (EC) granted marketing authorization for AVT03, a biosimilar of Prolia (denosumab) and Xgeva (denosumab).
These drugs are widely used for managing osteoporosis and bone complications associated with cancer.

A biosimilar, being a replica of a high-cost biological medicine, offers a more affordable treatment option in global markets.

Dr. Reddy’s highlighted details of its licensing and supply agreement:

In May 2024, the company partnered with Alvotech for AVT03 commercialization.
Alvotech will handle development and manufacturing, while Dr. Reddy’s will manage registration and commercialization in the U.S., Europe, and other markets.
Dr. Reddy’s has exclusive rights in the U.S. and semi-exclusive rights in Europe and the UK.
Upon approval, the biosimilar will be marketed under the brand names Acvybra and Xbonzy in respective dosage forms.

Dr. Reddy’s Stock Performance

Despite today’s uptick, Dr. Reddy’s share performance has been mixed:

The stock has fallen over 3% in the past month.
It has made marginal gains over the past six months.
For the 2025 year-to-date, the stock is down more than 9%.
However, over the past five years, it has risen 29%.

Sector Outlook Turns Positive

The rebound in pharma stocks reflects renewed optimism in the sector after a brief period of weakness. With brokerages reiterating positive views, regulatory tailwinds, and selective stock-specific developments, market sentiment appears to be stabilizing.

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