The brokerage firm JM Financial has given a ‘Buy’ rating on this CDMO player. The domestic brokerage house has set a target price of Rs 313 per share, implying an upside potential of nearly 67% from the current market price.
The stock in focus here is Piramal Pharma. Let’s take a look at the four key reasons why the brokerage is bullish on this company.
JM Financial on Piramal Pharma: A big step in the US market
The share price of Piramal Pharma is in focus after Piramal Pharma Solutions (PPS), the contract development and manufacturing arm has struck a multi-million dollar deal with NewAmsterdam Pharma.
According to the brokerage report, “The new suite will support the commercial production of NewAmsterdam’s fixed dose combination (FDC) of Obicetrapib and Ezetimibe, significantly enhancing Piramal’s global OSD capabilities while reinforcing its integrated US–India network and long-term growth visibility.”
JM Financial on Piramal Pharma: Product potential
At the heart of this tie-up lies Obicetrapib, a drug under development to lower LDL cholesterol. The novel CETP inhibitor has already shown promise in Phase 2 and 3 trials.
As the company noted in its filing, “Obicetrapib is a novel, oral, low-dose CETP inhibitor being developed by NewAmsterdam Pharma to address the limitations of existing LDL-C lowering therapies. In multiple Phase 2 and 3 trials, it has shown significant reductions in LDL cholesterol with a placebo-like safety profile.”
When combined with Ezetimibe, a widely used cholesterol absorption inhibitor, the therapy offers a powerful non-statin alternative for patients who aren’t adequately treated by current drugs. According to the brokerage, the fixed dose combination has a market potential of USD 1–2 billion once commercialized.
JM Financial on Piramal Pharma: A partnership that goes deeper
This is not the first collaboration between Piramal Pharma and NewAmsterdam.
JM Financial highlighted, “Piramal’s integrated global network has already supported Obicetrapib’s development, with its Ahmedabad site playing a critical role in formulation work and the Pithampur site providing dual sourcing to ensure supply chain resilience.”
This means Piramal is not just a manufacturer here but a long-term development partner.
JM Financial on Piramal Pharma: Financial impact ahead
The brokerage expects the deal to start reflecting in numbers by FY27. With Piramal likely to be the exclusive supplier, revenues and margins are expected to get a strong boost.
According to the report, “The project will enhance the US business profitability as the margins are expected to be upwards of 30%. The contributions from the tie-up are expected to materialize from FY27 onwards and have USD 50–100 million annual top-line potential for the first three years.”
JM Financial has revised its estimates upwards, penciling in an additional Rs 2.6 billion and Rs 5.1 billion in revenue for FY27 and FY28, along with incremental EBITDA of Rs 0.9 billion and Rs 1.8 billion in the same period. Net profit estimates have also been raised by 8% for FY27 and 12% for FY28.
The brokerage noted, “Thus, valuing the segments at the same multiple in SOTP methodology, we arrive at June’26 target price of Rs 313.”