Piramal Pharma has once again become a focal point for investors as JM Financial, one of India’s leading brokerage firms, has given a bullish recommendation on the company. The domestic brokerage has assigned a target price of Rs 313 per share, implying an upside potential of nearly sixty seven percent from the current market price. This optimism follows a significant deal with NewAmsterdam Pharma in the United States and highlights Piramal Pharma’s growing global footprint.
The company’s contract development and manufacturing arm, Piramal Pharma Solutions, recently signed a multi-million dollar agreement with NewAmsterdam Pharma. The deal involves supporting the commercial production of a fixed dose combination of Obicetrapib and Ezetimibe, which is expected to enhance Piramal’s oral solid dosage capabilities globally while strengthening its integrated US–India network. This move is seen as a major step in establishing Piramal Pharma as a key player in the international pharmaceutical market and positions the company for long-term growth.
Obicetrapib, at the heart of this partnership, is a novel drug under development aimed at lowering LDL cholesterol. The drug has already shown promising results in multiple Phase 2 and Phase 3 trials, demonstrating significant reductions in LDL cholesterol with a safety profile comparable to placebo. When combined with Ezetimibe, a widely used cholesterol absorption inhibitor, the therapy offers an effective non-statin alternative for patients who are not adequately treated by existing therapies. According to JM Financial, the fixed dose combination could have a market potential of one to two billion US dollars once it becomes commercially available.
This collaboration is not the first between Piramal Pharma and NewAmsterdam. The brokerage firm highlighted that Piramal has already supported the development of Obicetrapib through its integrated global network, with its Ahmedabad facility playing a key role in formulation development and the Pithampur facility ensuring dual sourcing to maintain supply chain resilience. This demonstrates that Piramal is more than just a manufacturer; it is a long-term development partner contributing to the success of NewAmsterdam’s portfolio.
The financial implications of the deal are expected to be significant. JM Financial projects that the partnership will begin to reflect in Piramal Pharma’s numbers by the financial year 2027. As the likely exclusive supplier, Piramal is expected to experience a strong boost in both revenues and profit margins. The brokerage estimates that the deal could contribute between fifty to one hundred million US dollars in annual revenues for the first three years. This would enhance profitability, with margins expected to be upwards of thirty percent. JM Financial has accordingly revised its revenue estimates, projecting an additional Rs 2.6 billion for FY27 and Rs 5.1 billion for FY28, along with incremental EBITDA of Rs 0.9 billion and Rs 1.8 billion for the respective years. Net profit forecasts have also been raised by eight percent for FY27 and twelve percent for FY28.
The brokerage’s valuation of the company using the sum-of-the-parts methodology has led to a target price of Rs 313 for June 2026. This assessment reflects the confidence that JM Financial has in Piramal Pharma’s growth prospects, driven by strong product potential, a strategic partnership with a global player, and robust financial performance.
For investors seeking long-term opportunities in the pharmaceutical sector, Piramal Pharma presents a compelling case with its strategic initiatives, global collaborations, and expected financial gains. The company’s growing presence in the United States, combined with its integrated manufacturing and development capabilities, positions it well to benefit from rising global demand in the contract development and manufacturing space.
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