Lupin, Sun Pharma shrug off sea of red on Dalal Street; heres what driving the gains

Lupin, Sun Pharma share price: The Nifty Pharma was among the few sections on Dalal Street managing to hold on to the green amid a broad-based sell-off, aided by gains in stocks such as Sun Pharma and Lupin. Wild swings in the Indian share market come in the backdrop of sharp falls in the global markets owing to weakness in the banking space, after the collapse of US-based startup lender Silicon Valley Bank following a failed attempt to raise capital.

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In late afternoon deals, Sun Pharma and Lupin were up one per cent each — contributing the most to the Nifty Pharma's rise of 0.3 per cent.

Besides Nifty Pharma, BSE Healthcare was among the few sectoral gauges managing to stay above the flatline.

Gland Pharma, Zydus, Elkem and Aurobindo Pharma were also among the gainers, rising around 1-4 per cent each, as a majority of stocks rose in the Nifty Pharma basket.

On the other hand, Dr reddy's Glenmark, Cipla and Divi's fell between 0.5 per cent and one per cent.

Here's a look at some of the key developments helping the Sun Pharma and Lupin stocks stay afloat:

Lupin shares

On Monday, Lupin said the US drug regulator — the FDA — completed an inspection of its bioresearch centre in Pune without any observation. The development comes days after observations at rival Cipla's Pitampur facility in Madhya Pradesh sent the drug maker's stock tumbling.

Lupin develops and markets a wide range of branded and generic formulations, and biotechnology products, with a presence in over 100 countries.

According to Nirmal Bang, regulatory uncertainty fuelled by the FDA is the biggest concern for the Indian pharma sector along with price erosion in US generics.

Indian pharma firms have not been able to address these issues for a long time, the brokerage said, adding that FDA-compliance issues will keep putting pressure on these stocks.

Sun Pharma shares

Jefferies maintained a ‘buy’ rating on the Sun Pharma stock with a target price of Rs 1,200 per share -- implying an upside potential of 25.8 per cent from Monday's closing price

According to the brokerage, Sun Pharma's acquisition of US-based Concert Pharmaceuticals adds a complementary derma product to the Indian company's existing specialty portfolio.

Sun Pharma announced the completion of its acquisition of Concert Pharma, a late-stage clinical biopharmaceutical company, last week.