Pharma Stocks Outlook: CDMO, Patent Cliff And China Plus One Opportunity Explained

With changing market dynamics, investors are looking for sectors that can deliver sustained long-term growth. Ashish Chaturmohta, Managing Director, PMS - JM Financial, believes the pharmaceutical sector, particularly the CDMO segment, is well-positioned to benefit from the global patent cliff, China+1 strategy, and increasing outsourcing by global innovators. He highlights companies such as Divi’s Laboratories, Laurus Labs, and Scilife as key beneficiaries of this trend. Apart from pharma, he remains optimistic on the financialization of savings theme, favouring asset management and wealth management companies. Stocks like HDFC AMC, Aditya Birla Sun Life AMC, ICICI Prudential AMC, Nuvama Wealth, and 360 ONE are expected to remain strong long-term compounders.