Piramal Pharma jumps 8%; JM Financial says 'Buy' stock, shares target price
The Piramal Pharma stock rose 8 per cent to hit a high of Rs 201.45 apiece on BSE, trimming its 2025 losses to 22.7per cent.
- Sep 3, 2025,
- Updated Sep 3, 2025 12:19 PM IST
Piramal Pharma shares climbed 8 per cent in Wednesday's trade, as JM Financial raised its earnings per share estimates for FY27 and FY28 while suggesting a 'Buy' rating on the stock. Piramal Pharma Solutions (PPS), the contract development and manufacturing organisation arm, recently announced a multimillion-dollar investment in collaboration with NewAmsterdam Pharma. This investment focuses on establishing a dedicated Oral Solid Dosage (OSD) suite at its Sellersville, Pennsylvania facility.
On Wednesday, the stock rose 8 per cent to hit a high of Rs 201.45 apiece on BSE, trimming its 2025 losses to 22.7per cent.
The new suite is set to bolster the commercial production of a fixed dose combination (FDC) drug involving Obicetrapib and Ezetimibe. JM Financial said 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," stated JM Financial.
Obicetrapib is a novel, low-dose CETP inhibitor, developed to overcome the limitations of existing LDL-C lowering therapies. When combined with Ezetimibe, it offers a potent, non-statin alternative for cardiovascular patients inadequately managed by current treatments. This combination drug targets an estimated market potential of USD 1-2 billion. The innovative nature of this drug combination not only addresses unmet medical needs but also represents a significant advancement in cardiovascular treatment options.
The collaboration with NewAmsterdam Pharma is projected to significantly improve Piramal Pharma's profitability in the United States, as the FDC products are anticipated to carry high profit margins. The long-standing partnership between the two companies goes beyond this investment, with Piramal's integrated global network playing a crucial role in Obicetrapib's development. This network ensures that the drug development process is efficient and resilient, highlighting Piramal's strategic position in the pharmaceutical industry.
In response to the partnership, JM Financial has revised Piramal's estimates for FY27 and FY28, increasing the Ebitda forecasts by 4 per cent and 7 per cent, respectively. "Thus, JM Financial expects an additional Rs 260 crore/Rs 510 crore in revenue for FY27E/FY28E and an incremental Rs 90 crore/180 crore Ebitda for the company over same horizon," according to JM Financial’s assessment. These adjustments underscore the financial community's confidence in Piramal's strategic direction and its potential for growth.
This strategic investment is expected to enhance Piramal's US business profitability, with contributions from the tie-up anticipated to materialise from FY27 onwards. The project is estimated to bring $50-100 million in annual revenue for the first three years, providing a robust boost to the company’s financial health. Such financial inflow is expected to not only stabilize but also significantly enhance Piramal's market position in the competitive pharmaceutical landscape.
Piramal Pharma’s role as an exclusive supplier through this partnership is poised to strengthen its market footprint. The collaboration involves dual sourcing to ensure supply chain resilience, with its Ahmedabad and Pithampur sites playing vital roles in formulation work. This strategic positioning allows Piramal to maintain a competitive edge while ensuring consistent product quality and supply reliability.
The projected financial benefits have prompted JM Financial to arrive at a June 2026 target price of Rs 313 for Piramal Pharma, using a sum of the parts (SOTP) valuation methodology. This adjustment reflects the positive outlook for Piramal as it continues to expand its capabilities and reinforce its position in the pharmaceutical industry. The strategic initiatives undertaken by Piramal are expected to yield substantial returns, contributing to a sustainable growth trajectory.
Piramal Pharma shares climbed 8 per cent in Wednesday's trade, as JM Financial raised its earnings per share estimates for FY27 and FY28 while suggesting a 'Buy' rating on the stock. Piramal Pharma Solutions (PPS), the contract development and manufacturing organisation arm, recently announced a multimillion-dollar investment in collaboration with NewAmsterdam Pharma. This investment focuses on establishing a dedicated Oral Solid Dosage (OSD) suite at its Sellersville, Pennsylvania facility.
On Wednesday, the stock rose 8 per cent to hit a high of Rs 201.45 apiece on BSE, trimming its 2025 losses to 22.7per cent.
The new suite is set to bolster the commercial production of a fixed dose combination (FDC) drug involving Obicetrapib and Ezetimibe. JM Financial said 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," stated JM Financial.
Obicetrapib is a novel, low-dose CETP inhibitor, developed to overcome the limitations of existing LDL-C lowering therapies. When combined with Ezetimibe, it offers a potent, non-statin alternative for cardiovascular patients inadequately managed by current treatments. This combination drug targets an estimated market potential of USD 1-2 billion. The innovative nature of this drug combination not only addresses unmet medical needs but also represents a significant advancement in cardiovascular treatment options.
The collaboration with NewAmsterdam Pharma is projected to significantly improve Piramal Pharma's profitability in the United States, as the FDC products are anticipated to carry high profit margins. The long-standing partnership between the two companies goes beyond this investment, with Piramal's integrated global network playing a crucial role in Obicetrapib's development. This network ensures that the drug development process is efficient and resilient, highlighting Piramal's strategic position in the pharmaceutical industry.
In response to the partnership, JM Financial has revised Piramal's estimates for FY27 and FY28, increasing the Ebitda forecasts by 4 per cent and 7 per cent, respectively. "Thus, JM Financial expects an additional Rs 260 crore/Rs 510 crore in revenue for FY27E/FY28E and an incremental Rs 90 crore/180 crore Ebitda for the company over same horizon," according to JM Financial’s assessment. These adjustments underscore the financial community's confidence in Piramal's strategic direction and its potential for growth.
This strategic investment is expected to enhance Piramal's US business profitability, with contributions from the tie-up anticipated to materialise from FY27 onwards. The project is estimated to bring $50-100 million in annual revenue for the first three years, providing a robust boost to the company’s financial health. Such financial inflow is expected to not only stabilize but also significantly enhance Piramal's market position in the competitive pharmaceutical landscape.
Piramal Pharma’s role as an exclusive supplier through this partnership is poised to strengthen its market footprint. The collaboration involves dual sourcing to ensure supply chain resilience, with its Ahmedabad and Pithampur sites playing vital roles in formulation work. This strategic positioning allows Piramal to maintain a competitive edge while ensuring consistent product quality and supply reliability.
The projected financial benefits have prompted JM Financial to arrive at a June 2026 target price of Rs 313 for Piramal Pharma, using a sum of the parts (SOTP) valuation methodology. This adjustment reflects the positive outlook for Piramal as it continues to expand its capabilities and reinforce its position in the pharmaceutical industry. The strategic initiatives undertaken by Piramal are expected to yield substantial returns, contributing to a sustainable growth trajectory.