Cohance Lifesciences Stock Jumps After Jefferies Buy Recommendation
Indian Pharma firms Poised for Growth as Global Drugmakers Seek Strategic Partners
mumbai, India – In a significant vote of confidence for the Indian pharmaceutical sector, global brokerage firm Jefferies has initiated coverage and upgraded ratings on several key Contract Research, Development, and Manufacturing Organizations (CRDMOs), predicting substantial growth in the coming years. This bullish outlook has already sent ripples through the market, with shares of Cohance Lifesciences, Divi’s Laboratories, and SAI Life Sciences experiencing notable gains.
Jefferies’ analysis points to a essential shift in the CRDMO landscape. India is rapidly evolving from a hub for conventional chemical manufacturing to a strategic partner for global pharmaceutical innovators. This transformation is fueled by enhanced capabilities, geographic diversification, and the increasingly important “China+1” strategy, where companies seek to diversify their supply chains beyond China.
Key Highlights from Jefferies’ Analysis:
overall Sector Growth: Jefferies projects a high-teen revenue Compound Annual Growth Rate (CAGR) of 18% for the Indian CRDMO sector between fiscal years 2025 and 2030. This growth is underpinned by strong pipeline visibility and the increasing demand for complex pharmaceutical solutions.
SAI Life Sciences: Top Pick: Named Jefferies’ top pick, SAI Life Sciences is lauded for its integrated service offerings, strong presence in both Eastern and Western markets, and high growth visibility. The firm anticipates a 15% revenue CAGR and a 24% EBITDA CAGR over FY25-28E, setting a target price of Rs 1,100, a 19% upside from its recent close of Rs 924.
Cohance Lifesciences: High Growth Potential: Initiated with a “Buy” rating and a target price of Rs 1,150 (a 28% upside from its recent close of Rs 896), Cohance Lifesciences is expected to exhibit the highest growth rate among the CRDMOs covered by Jefferies. The brokerage forecasts an EBITDA CAGR exceeding 25% over FY25-28E. Cohance is also recognized as the strongest Antibody-Drug Conjugate (ADC) play in the Indian listed space,backed by a strong management team and proven execution capabilities.
Divi’s Laboratories: upgraded Outlook: Divi’s Laboratories has been upgraded to “Buy” due to optimism surrounding its GLP-1 drug pipeline. Jefferies has set a target price of Rs 7,150,indicating a 19% upside from the closing price of Rs 6,027.
Market Reaction:
The positive news from Jefferies triggered an immediate upward rally in the stocks of the companies mentioned:
Cohance Lifesciences surged 5.5% to Rs 935 in intraday trade.
Divi’s Laboratories advanced 2.5% to an intraday high of Rs 6,314.5.
* SAI Life Sciences rose about 2% to Rs 943 apiece on the NSE.
Implications for the Indian Pharma Sector:
Jefferies’ bullish outlook underscores the growing importance of Indian CRDMOs in the global pharmaceutical supply chain. As global innovators seek strategic partners with advanced capabilities and diversified geographic footprints, Indian companies are well-positioned to capitalize on this trend. The projected high-teen revenue CAGR for the sector signals a period of sustained growth and value creation for investors and stakeholders alike.
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