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Best Pharma Stocks to Buy In India 2023

Over the last few decades, pharma stocks have gained some momentum in a positive direction, showing a rate of substantial growth, both in domestic and international markets. “Made in India” medicines are making the Indian pharmaceutical market robust with the best pharma stocks. 

India is a chief producer of quality-controlled and affordable generic drugs. India plays a role in supplying approximately 20 percent of the demand for pharmaceuticals globally, concerning volume. India’s strong point in terms of pharmaceutical industries has been that it traditionally produces generic drugs at a fast pace and in a cost-effective way. 

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Indian Pharma Companies - Unique Aspects

Many unique aspects of the Indian pharma market have led to its gradual yet steady growth. Furthermore, the same factors that have contributed to its growth may be the ones that have resulted in its recognition as a force to contend with. These are the reasons why investors find some of the best pharma stocks on Indian shores. 

Firstly, the biggest strength of the pharmaceuticals market in India is the nation’s grip on the market of generic branded drugs. India can afford to boast of the highest number of USFDA-approved manufacturing plants for generic drugs outside America. What are generic drugs? They are the equivalent versions, pharmacologically, of branded drugs. They have the same dosage, potential use and other qualities as the original drugs. India earned more than USD 21 billion via biosimilars in the prescription drug market.

Secondly, local players in the industry have created niches through early investments and fresh formulation development abilities. Domestic firms like Cipla, Aurobindo, Desano, Laurus Labs, Emcure and Hetero Labs have an UN-supported Medicines Patent Pool to manufacture anti-AIDS drugs for more than 110 countries in developing markets. The Indian drug market is going places, so investors may seriously consider this space to invest in the best pharma stocks in India. 

The Best Pharma Stocks to Buy

Indian manufacturers of drugs have ensured healthy competition within the market, keeping generic productions of drugs extremely low relative to international prices. Although India ranks 10th globally concerning pharma production value, the country comes 3rd for its production volumes. Here are some of the pharma stocks to buy in 2023 depending on investors’ financial goals: 

  • Sun Pharmaceutical Industries

This is a speciality generic pharmaceutical company and you could consider it one of the top stocks to buy in India right now. Sun Pharmaceutical Industries is engaged in the operational manufacture, production and development of a wide variety of generic formulations. The company is also involved in pharmaceutical marketing activities. The company creates a range of speciality and generic drugs which focus on the acute and chronic treatment of diseases. Posting great quarterly results for the financial year, which ended in December 2022, the stock is set to possibly take off to new horizons in 2023. 

  • Cipla

Cipla needs no introduction in terms of its pharmaceutical industry presence. This big name is mainly involved in the pharmaceutical business and is considered a long-term investment gainer. Generic and branded drugs make up Cipla’s business and it has some overseas operations as well. The company also deals in Active Pharmaceutical Ingredients or API. 

  • Divi’s Laboratories 

If you are interested in some of the best pharma stocks, you may consider Divi’s Laboratories. An Indian company that is involved in the manufacture and sale of APIs, or Active Pharmaceutical Ingredients, as well as nutraceutical ingredients, this company is engaged mainly in exports. Boasting the world’s biggest API facility for manufacturing and processing, Divi’s Laboratories was established in 1990. With stringent standards of operation according to global norms, the company is committed to offering a competitive edge at all phases of the life cycle of the manufacture of drugs. 

  • Abbott India

Since its inception in 1910, Abbott India has been working on its promise to deliver a healthy lifestyle to its customers. A premier pharmaceutical company with a long-standing reputation, Abbott India deals in science-based nutritional products, branded generic pharmaceuticals, diabetes and vascular devices and diagnostic tools. The company has its headquarters in Mumbai, the Indian business capital, and is a subsidiary of Abbott Laboratories.  It takes pride in providing high-quality and reliable drugs in various therapeutic categories like cardiology, women's health, metabolic disorders, gastroenterology, and primary care.

The company has expertise across manufacturing, product development, sales, and client support and service of the highest clinical standards. The company is engaged in domestic and global functions with fully trained personnel who work across India to produce cost-effective drug solutions. 

  • Dr Reddy’s Laboratories

The list of best pharma stocks in India would not be complete without this company. Dr Reddy’s Laboratories is a company based out of India with different segments involved in the development, research, manufacture and sales of medicine. The segments of the company include Pharmaceutical Services and Active Ingredients (PSA1), Global Generics, Aurigene Discovery Technologies Limited and Proprietary Products. The company has always worked towards the empowerment of its staff and constantly holds training sessions to enhance employee quality. It also has the distinction of being awarded The Economic Times Best Organisations for Women  Prize in 2023, along with recognition on the Bloomberg Gender-Equality Index for a sixth year in a row. This is an organisation with high-held norms for quality and is progressive in its practices in sustainability and gender equality, besides being one of the best pharmaceutical companies to invest in. 

Invest in Pharma

Pharmaceutical stocks are among the best to consider investing in today. You may already have a financial portfolio and could think of a few good pharma companies to invest in after evaluating your financial goals. If you are new to stock investing, you will need to open a demat account and then buy the pharma stocks you want, depending on your financial research and objectives. You may come across some great companies to consider and have a broad range of stocks in your portfolio of investment. While doing your research, you may also wish to look at an upcoming IPO in the same sector after learning about its potential for the future. 

 

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