Jefferies notes that Indian CRO/CDMO stocks have delivered strong returns over the past six months due to increased expectations of recovery in US biotech funding and the potential passing of the Biosecure Act.
The US Senate’s decision on the Biosecure Act during its December session will act as a key near-term trigger. A stricter version of the Act could be a significant positive for Indian CDMO players, while dilution or delays could be a setback.
Indian CDMO companies like Divi’s Labs and Syngene International remain key beneficiaries. Jefferies expects high volatility in the space during December and advises investors to track developments in the US legislative framework.
