Divi's Labs share: Nuvama says 'Buy', sees growing GLP-1 opportunities
Divi's Labs share price target: Nuvama's decision to maintain the 'Buy' rating includes a target price of Rs 7,110, reflecting confidence in Divi's Labs' growth potential amidst these new opportunities.
- Aug 29, 2025,
- Updated Aug 29, 2025 8:48 AM IST
Nuvama has reiterated its 'Buy' rating for Divi's Laboratories, emphasising the company's strategic position in manufacturing ingredients for Orforglipron, a promising oral GLP-1 treatment developed by Eli Lilly. Divi's Labs is reportedly working on producing two to three vital ingredients for this drug, which has already shown favourable outcomes in clinical trials.
The brokerage forecasts that Divi's current production capacity could generate approximately $60 million in revenue. However, Nuvama anticipates potential expansions that could elevate this figure to as much as $200–300 million at peak capability. This reflects a significant opportunity as the global demand for oral GLP-1 treatments intensifies. Moreover, the scalability of Divi's operations is expected to align with the increasing market needs, providing a robust growth trajectory.
Eli Lilly's Orforglipron has demonstrated positive results in its Phase III trials, successfully meeting its endpoints with notable efficacy in weight loss and A1C reduction. These outcomes are pivotal as the pharmaceutical company prepares for regulatory submissions, aiming for approval by 2026. The success of these trials not only highlights the drug's potential but also sets a promising precedent for future developments in the field.
The global obesity crisis, affecting over one billion people, underscores the importance of accessible treatments. Orforglipron offers a substantial market potential, with peak sales projected between $15 and $40 billion. This provides a considerable commercial manufacturing opportunity, ranging from $500 million to $1.5 billion, in which Divi's Labs is well-positioned to benefit. This opportunity is further enhanced by the growing awareness and demand for effective obesity treatments worldwide.
Eli Lilly has already prepared a substantial pre-launch inventory worth $550 million to ensure sufficient market supply post-launch. This preparation aligns with the anticipated late-2025 start for Divi's manufacturing partnership opportunities. Such strategic planning by Eli Lilly indicates a strong commitment to capturing market share and ensuring product availability.
Divi's Labs is also reported to be developing manufacturing capacities for other injectable GLP-1 components, which could further enhance its market position. The company's focus on expanding its production capabilities reflects its forward-thinking approach to capitalising on the growing demand for such therapies. This proactive strategy is likely to solidify its standing in the competitive pharmaceutical landscape.
Nuvama's decision to maintain the 'Buy' rating includes a target price of Rs 7,110, reflecting confidence in Divi's Labs' growth potential amidst these new opportunities. This rating is buoyed by the expected scalability of Divi's production capacities and the promising market prospects for Orforglipron. The company's strategic initiatives are anticipated to drive significant shareholder value in the coming years.
As the market for weight loss and diabetes treatments continues to expand, Divi's Labs' strategic investments in production capabilities position it advantageously for future growth. Analysts remain optimistic about the company's ability to capture a significant share of the GLP-1 market, driven by its partnerships with leading pharmaceutical firms like Eli Lilly. The alignment of Divi's capabilities with market demands is expected to yield substantial benefits, both in terms of revenue and market influence.
Nuvama has reiterated its 'Buy' rating for Divi's Laboratories, emphasising the company's strategic position in manufacturing ingredients for Orforglipron, a promising oral GLP-1 treatment developed by Eli Lilly. Divi's Labs is reportedly working on producing two to three vital ingredients for this drug, which has already shown favourable outcomes in clinical trials.
The brokerage forecasts that Divi's current production capacity could generate approximately $60 million in revenue. However, Nuvama anticipates potential expansions that could elevate this figure to as much as $200–300 million at peak capability. This reflects a significant opportunity as the global demand for oral GLP-1 treatments intensifies. Moreover, the scalability of Divi's operations is expected to align with the increasing market needs, providing a robust growth trajectory.
Eli Lilly's Orforglipron has demonstrated positive results in its Phase III trials, successfully meeting its endpoints with notable efficacy in weight loss and A1C reduction. These outcomes are pivotal as the pharmaceutical company prepares for regulatory submissions, aiming for approval by 2026. The success of these trials not only highlights the drug's potential but also sets a promising precedent for future developments in the field.
The global obesity crisis, affecting over one billion people, underscores the importance of accessible treatments. Orforglipron offers a substantial market potential, with peak sales projected between $15 and $40 billion. This provides a considerable commercial manufacturing opportunity, ranging from $500 million to $1.5 billion, in which Divi's Labs is well-positioned to benefit. This opportunity is further enhanced by the growing awareness and demand for effective obesity treatments worldwide.
Eli Lilly has already prepared a substantial pre-launch inventory worth $550 million to ensure sufficient market supply post-launch. This preparation aligns with the anticipated late-2025 start for Divi's manufacturing partnership opportunities. Such strategic planning by Eli Lilly indicates a strong commitment to capturing market share and ensuring product availability.
Divi's Labs is also reported to be developing manufacturing capacities for other injectable GLP-1 components, which could further enhance its market position. The company's focus on expanding its production capabilities reflects its forward-thinking approach to capitalising on the growing demand for such therapies. This proactive strategy is likely to solidify its standing in the competitive pharmaceutical landscape.
Nuvama's decision to maintain the 'Buy' rating includes a target price of Rs 7,110, reflecting confidence in Divi's Labs' growth potential amidst these new opportunities. This rating is buoyed by the expected scalability of Divi's production capacities and the promising market prospects for Orforglipron. The company's strategic initiatives are anticipated to drive significant shareholder value in the coming years.
As the market for weight loss and diabetes treatments continues to expand, Divi's Labs' strategic investments in production capabilities position it advantageously for future growth. Analysts remain optimistic about the company's ability to capture a significant share of the GLP-1 market, driven by its partnerships with leading pharmaceutical firms like Eli Lilly. The alignment of Divi's capabilities with market demands is expected to yield substantial benefits, both in terms of revenue and market influence.