Macquarie has revisited its outlook on India’s export-oriented pharmaceutical companies as the industry approaches the end of the limited competition period for gRevlimid, a key generic contributor for several players. The brokerage has downgraded Aurobindo Pharma to Underperform and Dr Reddy’s Laboratories to Neutral, citing a weakening revenue outlook from the U.S. generics market.
The target price for Aurobindo has been sharply reduced to ₹1,010 from ₹1,700, while Dr Reddy’s target has been revised down to ₹1,190 from ₹1,450. Macquarie believes both companies will face growth and margin pressures as gRevlimid sales taper and competitive intensity rises.
The brokerage has retained Outperform ratings on Cipla, Zydus Lifesciences, and Lupin but has trimmed their target prices—Cipla to ₹1,700, Zydus to ₹1,110, and Lupin to ₹2,350—reflecting a more conservative earnings outlook across the sector.
Macquarie reiterated its Outperform stance on Sun Pharma with an unchanged target of ₹2,135, highlighting the company’s minimal exposure to the U.S. generics segment. The brokerage considers Sun Pharma relatively better positioned given its specialty portfolio and diversified earnings base.
Overall, Macquarie’s report signals a cautious near-term view on Indian pharma exporters, particularly those heavily reliant on limited-competition U.S. products.
Disclaimer: The views expressed above are those of Macquarie and do not constitute investment advice. This article is for informational purposes only.
