Sun Pharma, Dr Reddy's Labs, Onesource: Nifty Pharma rallies 3%; details

Nifty Pharma gained 3 per cent in trade on the National Stock Exchange (NSE) on Monday, April 27, 2026. At 10:56 AM, out of 20 stocks, 18 shares advanced. Among others, Sun Pharma was the top gainer up over 7 per cent, followed by Gland Pharma, Alkem Laboratories, Zydus Lifesciences and Wockhardt up over 2 per cent. 

Individually, Sun Pharma rallied after the company entered into a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for $14.00 per share in an all-cash transaction with an enterprise valuation of $11.75 billion.  

Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the United States and Canada, in 2021. Organon has six manufacturing facilities across the European Union and emerging markets.  Meanwhile, Dr Reddy's Laboratories and Onesource Specialty Pharma shares also gained over 1 per cent. A note by ICICI Securities said that Dr Reddy's is on the cusp of securing a Notice of Compliance (NoC) from Health Canada for generic semaglutide — a potential blockbuster opportunity in Canada's fast-growing GLP-1 market. The brokerage retained an 'Add' on Dr Reddy's with a higher target price of ₹1,435, based on 20x FY28 eanings per share (EPS), and a 'Buy' on OneSource with a revised target of ₹2,300, based on 20x FY28 enterprise value to Earnings before interest, tax, depreciation and amortisation (EV/Ebitda).  According to ICICI Securities, Dr Reddy's received a Drug Identification Number (DIN) from Health Canada — the final step before securing a NoC, which would clear the way for a commercial launch. The brokerage believes there is a high probability of the approval coming through over the next few days, with a potential launch in Q1FY27. 

 

Of the seven companies that have filed for generic semaglutide approval in Canada, two to three — including Dr Reddy's — are likely to receive regulatory clearance in the near term. Applications from two other companies have been pending for over a year, suggesting they could also enter the market soon.  READ | Sun Pharma rallies 6%, top gainer among Sensex stocks; here's why 

Canada is widely regarded as the second-largest semaglutide market globally after the US. Ozempic, Novo Nordisk's branded version of the drug, registered sales of CAD 2.9 billion in CY25, per IQVIA Canada data, with approximately one million Canadians already using the drug. Health Canada is yet to approve a generic version of semaglutide, even though the innovator lost product exclusivity in January 2026 — leaving the market wide open for early generic entrants. 

Unlike the US, where generic competition typically erodes over 90 per cent of brand value, Canada operates under a reimbursement-driven pricing system that is more stable and predictable. Under the three-tiered framework of the pan-Canadian Pharmaceutical Alliance (pCPA), prices of a given molecule fall 25-45 per cent on a generic's entry, declining to 35 per cent of the brand price after multiple players enter the market. 

Ozempic is currently priced at CAD 250-300 per month in Canada. This implies a meaningful initial window of favourable pricing and market share gains for early entrants — a structural advantage that Dr Reddy's is well-positioned to exploit.  READ | Cohance Lifesciences shares zoom 20% to hit upper circuit; here's why  The company is initially focusing on launching generic Ozempic (gOzempic) in Canada and has approximately 12 million annual pens capacity tied up across manufacturing and delivery systems for FY27. A submission for generic Wegovy — the weight loss indication of semaglutide — is expected in CY26, providing an incremental growth opportunity beyond the diabetes segment. 

The brokerage estimates semaglutide could generate revenues of $175 million in FY27 and $165 million in FY28 for Dr Reddy's. Overall generic semaglutide volumes in Canada are pegged at approximately 10 million pens annually, potentially translating into a $30-40 million revenue opportunity for OneSource — a fill-finish partner for both Dr Reddy's and Apotex — as more players receive approval.   

Overall positive market sentiments also pushed the pharma stocks higher. NSE Nifty50 was last seen trading at 24,072.6, up 174.65 points or 0.73 per cent.  Disclaimer: Views and outlook shared belong to the respective brokerages and analysts and are not endorsed by Business Standard. Readers are advised to exercise discretion.