Brokerage firm Nuvama cut earnings per share (EPS) estimates for Biocon Ltd. up 38% for financial year 2025 as it expects struggles for the company’s generics business.

A USFDA clearance to the Bengaluru facility, the outcome of the Aflibercept litigation, a re-inspection of the Malaysian facility and deleveraging, along with a turnaround in Syngene and the generics business are some of the key triggers for Biocon going forward, according to Nuvama .

The brokerage has a “hold” rating on Biocon with a price target of INR 310.

On the other hand, Nuvama raised its EPS estimates for Lupin, Natco Pharma, Sun Pharma and Dr. Reddy’s Laboratories single digit. However, he sees some short-term challenges for Sun Pharma and Cipla going forward.

For India’s largest drugmaker Sun Pharma, Nuvama sees a delay in commissioning some of its trials, higher R&D spending in the second half of the year and a negative outcome of the Leqselvi litigation as some of the main negatives for the stock.

Going forward, a re-inspection of key facilities by the USFDA, completion of clinical trials and data release, and the launch of new generics in the US are some of the key triggers for Sun Pharma going forward.

For Cipla, Nuvama wrote that an incomplete recovery in the generics business, potential competition for the albuterol inhaler in the second half of the financial year and a temporary supply challenge for Lanreotide in the December quarter are some of the main negatives for the drugmaker in Mumbai. .

Commercialization of China unit, recovery of generics business, peptide launches, gSymbicort, gQvar in coming years are some of the key triggers for Cipla going forward.

Nuvama wrote in its note that the Pharma index’s valuation premium holds despite a nearly 8% decline since October and a single-digit cut in FY2025 and FY26 EPS estimates.