Sun, Dr Reddy's, Aurobindo, Lupin, Zydus lead US performance in Q3. Sun Pharma, JB Pharma are BNP Paribas 2 top picks

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Also Read-Stock market today: Vodafone Idea shares dip ahead of board meeting to discuss fundraising. Buy or sell? Analysts at Motilal Oswal Financial Services said that aggregate net profit for pharma companies under their coverage universe were up 15.5% YoY in 3QFY24. Aggregate growth for domestic formulation was 12% y-o-y for companies under BNP Paribas coverage, which is highest in the last seven quarters.

Most with exception of Dr Reddy's Laboratories saw domestic growth exceeding expectations. Mankind, Zydus life reported high growth of 20% and 16% year-on-year in 3QFY24, while Lupin's domestic formulations grew by 13% y-o-y, which is its highest in the last in nine quarters they said. Aggregate US revenue for companies under BNP Paribas coverage grew by 5% sequentially versus their expectations of 1% sequentially, largely led by companies such as Sun Pharma, Aurobindo Pharma and Dr Reddy's Laboratories.

Sun Pharmaceutical notably had reported its highest ever quarterly sales from its specialty division of $276 million (adjusted for milestone income). Aurobindo Pharma and Dr Reddy's posted sequential US revenue growth of 10% and 4% respectively, which analysts believe was largely led by contributions of Revlimid, the blockbuster multiple Myeloma treatment drug. Also Read- Stocks To Buy: HDFC Securities sees 14-18% upside for SAIL Lupin too continues performing well in the US market and its performance is being led by respiratory products.

Launch of generics of Spiriva was key highlight during Q3. Analysts at Antique Stock Broking also said that growth momentum for Lupin continues, EBITDA margin at a multi-quarter high. Zydus Lifesciences performance as per Antique stock broking was exceptionally good with niche