Last Updated:
Shares of pharmaceutical companies rallied on December 19 after the US Senate cleared the ‘Biosecure Act’
India Pharma
Shares of pharmaceutical companies rallied on December 19 after the US Senate cleared the ‘Biosecure Act’, which restricts certain Chinese biotech firms from accessing federal funding.
The surge in pharma stocks lifted the Nifty Pharma index by 0.65 percent to 22,704.30 as of 11:15 am on Friday. Earlier in the session, the index had jumped more than 1.35 percent to a high of 22,863.
Biosecure Act:
On Wednesday, the US Senate passed the fiscal 2026 National Defense Authorization Act (NDAA), a nearly $1 trillion bill that outlines Pentagon policy and has been approved by Congress for 65 consecutive years. Following the House of Representatives’ approval last week, the Senate’s clearance will now send the bill to the White House for US President Donald Trump’s signature to become law.
The NDAA incorporates a revised version of the ‘Biosecure Act’, which prohibits certain Chinese biotech companies from receiving federal funding. First introduced in 2024, the proposal had earlier failed to clear Congress. The Biosecure legislation aims to curb China’s influence over America’s biotech supply chains and protect against potential biotech espionage.
India is seen as one of the key beneficiaries as the US moves to reduce China’s influence, lending support to Indian pharmaceutical stocks. Citi noted that the latest version of the Act does not name specific companies, though the US Department of Defense has indicated that a major Contract Development and Manufacturing Organization (CDMO) could be impacted. The brokerage added that this could potentially benefit Indian CDMOs, particularly Divi’s Laboratories.
Global brokerage Macquarie said Divi’s Laboratories is the frontrunner in terms of capacity creation to benefit from the US Biosecure Act, citing the company’s strong regulatory track record and robust purification capabilities.
Wockhardt shares surged 5 percent to trade at Rs 1,446.70 apiece, emerging as the top gainer on the Nifty Pharma index. Laurus Labs climbed nearly 3 percent, while Divi’s Laboratories advanced around 2 percent.
Ajanta Pharma and Biocon rose more than 1 percent each. Piramal Pharma, Aurobindo Pharma, Cipla and Gland Pharma gained close to 1 percent apiece. Mankind Pharma, Lupin, Glenmark Pharmaceuticals, Zydus Lifesciences, Abbott India, Sun Pharmaceutical Industries, IPCA Laboratories and Dr. Reddy’s Laboratories were trading in the green with marginal gains.
Defying the broader trend, shares of JB Chemicals & Pharmaceuticals, Alkem Laboratories and Torrent Pharmaceuticals were trading lower, posting marginal losses.
Click here to add News18 as your preferred news source on Google.
December 19, 2025, 13:07 IST
Read More