Shares of Suven Pharmaceuticals Ltd soared 12% today after Macquarie Equity Research initiated an ‘Outperform’ rating on multiple contract research, development, and manufacturing (CRDMO) companies, including Divi’s Labs, Suven Pharma, Bluejet Healthcare, and Syngene International.
According to Macquarie’s analysis, Indian CDMOs are positioned to capitalize on long-term growth trends and favorable regulatory changes. The report highlights that Indian CDMOs are becoming leaders in small molecule development, offering cost-effective solutions with strong regulatory compliance.
Key insights from Macquarie’s report:
- Suven Pharmaceuticals’ upside potential is estimated at 29.9%, with a target price of ₹1,500.
- Divi’s Laboratories remains the brokerage’s top pick, with an estimated upside of 24.6%.
- Blue Jet Healthcare and Syngene International are also rated as ‘Outperform’ with upside potentials of 27.1% and 18.8%, respectively.
- The report states that large molecule CDMOs are dominated by South Korea, with Samsung Biologics emerging as a leader in monoclonal antibody production.
- Chinese CDMOs, once industry favorites, are now facing regulatory challenges due to the US Biosecure Act, which has led to a shift in projects to Indian and Korean suppliers.
Macquarie believes that Indian CDMOs will continue to outperform global peers, driven by scale, reliability, and strong customer relationships.