The brokerage firm, Jefferies, is betting big on 3 pharmaceutical stocks. Lupin, Zydus Lifesciences, Biocon, on the back of changing market share dynamics in the US generic medicines and increased the sales of generic Revlimid against the previous quarter.
The brokerage firm said that in the US generic market, Revlimid is picking up steam and a lot of changes can be witnessed in the market share of different companies. Revlimid is a cancer drug prescription medicine, which is used to treat adults with multiple myeloma.
Jefferies sees Zydus Lifesciences as long-term investment
Jefferies has a Buy rating on the stock of Zydus Lifesciences and sees it as a long-term investment. Zydus has entered the generic Vascepa market, gaining a market share of 1% to begin with. Vascepa is a prescription medication used to help lower blood levels of triglycerides in adults with certain indications. Also, Lupin and Zydus will continue to gain market share in Mirabegron. It is used to treat the symptoms of an overactive bladder.
However, Zydus’ share in Asacol HD continues to decline while Teva gains. Its Teva market share increased to 22%. Zydus’ market share in Asacol HD continued to trend downwards with a loss of 291 basis points in the past four weeks and market share was down to 78%.
Jefferies on Lupin: US pipeline strong
Jefferies maintained its Hold rating on the stock of Lupin. The brokerage said that the US pipeline is strong but “FY26 could be the cliff.” Lupin gained 163 basis points to reach a share of 14% in Mirabegron. Lupin has begun to gain further market share in generic Spiriva after months of pause. Spiriva helps people with chronic obstructive pulmonary disease (COPD), it makes breathing comfortable by relaxing air passages. “Over the last 6-7 weeks, Lupin has swiftly gained market share in gSpiriva to 34.4%, up 163bps MoM. This is after a hiatus where market share had stagnated around 29-30% since June 2024 onwards,” said the brokerage firm.
Jefferies on Biocon: Insulin market share at all-time high
Biocon’s market share reaches an all-time high in Insulin Glargine: Biocon’s Insulin Glargine market share rose to 13.4%, a jump of 115 basis points month-on-month, standing at its all-time high levels. However, the market share in another medicine Pegfilgrastim dropped 760 basis points to 27.5% from Nov-24 to Dec-24, but it is still above 23.1% clocked in Sep-24. “Market share for Trastuzumab also dropped 170 basis points from Nov-24 to Dec-24 but still better than 18.9% reported in Sep-24,” said Jefferies in a research note.
Nifty Pharma’s performance
Nifty Pharma has fallen 2% in the past five trading days and 9% in the previous one month. The index has declined 15% in the last six months. However, it has given a return of more than 4% in the past one year.