Shares of Divi’s Laboratories Ltd. rose nearly 2% on November 29 after international brokerage Citi reaffirmed its ‘buy’ call on the stock, naming it as the top pick in the Indian pharma sector. Citi highlighted the company’s expanding pipeline for its contrast media business as a key driver for future growth and set a price target of ₹6,850, indicating a potential upside of 15% from Thursday’s closing price.
Key Drivers:
- Expanding Pipeline: Divi’s Labs is focusing on building a strong pipeline in the contrast media segment, a crucial area in medical imaging.
- USFDA Ruling on Entresto: The US court’s decision to stay the United States Food and Drug Administration’s approval of a generic version of Novartis AG’s blockbuster heart failure drug, Entresto, has brought relief. This ruling reduces competitive pressures on sales of the drug Divi’s manufactures for Novartis.
Market Performance:
As of 9:34 am, Divi’s shares were trading 1.47% higher at ₹6,039.00 on the NSE.
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