Goldman Sachs has downgraded Gland Pharma to a ‘Sell’ rating and slashed its target price to ₹1,500 from ₹1,849, citing multiple headwinds affecting the company’s profitability. The investment bank foresees challenges due to an increasing reliance on lower-margin legacy products for growth, rising pricing pressures and competition in key US markets, and potential delays in launching higher-margin products.
Additionally, Gland Pharma’s slower-than-expected turnaround at its Cenexi acquisition and higher investments for new ventures are expected to weigh on its performance. As a result, Goldman Sachs has cut its earnings per share (EPS) estimates by 17-20% for FY25-27, along with a 300 basis points reduction in core business margins.
Goldman also highlighted the company’s relatively expensive valuation, trading at 28x 12-month forward P/E compared to approximately 20x for its key injectable peers, further supporting the downgrade.
