Pharmaceutical stocks rallied sharply today after the US Senate passed the revised Biosecure Act as part of the fiscal 2026 National Defense Authorization Act, pushing several pharma stocks up by as much as 5 percent during the session.
The buying momentum lifted the Nifty Pharma index 0.65 percent to 22,704.30 by 11:15 am, after it had climbed more than 1.35 percent earlier in the day to 22,863. The rally was driven by expectations that Indian drugmakers could benefit as the US seeks to reduce dependence on Chinese biotechnology supply chains, with the Act barring certain Chinese biotech companies from receiving US federal funding.
According to global brokerage Macquarie, Divi’s Laboratories is a front-runner in terms of capacity creation to benefit from the Biosecure Act, citing the company’s strong regulatory track record and robust purification capabilities. Citi noted that while the latest version of the Act does not name specific companies, the US defence department has indicated that a major contract development and manufacturing organisation could be impacted, which may potentially benefit Indian CDMOs, particularly Divi’s Laboratories.
On the stock-specific front, Wockhardt emerged as the top gainer on the Nifty Pharma index, with shares jumping 5 percent to Rs 1,446.70. Laurus Labs gained nearly 3 percent, while Divi’s Laboratories rose around 2 percent. Ajanta Pharma and Biocon advanced more than 1 percent each. Shares of Piramal Pharma, Aurobindo Pharma, Cipla and Gland Pharma rose close to 1 percent each. 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. In contrast, JB Chemicals & Pharmaceuticals, Alkem Laboratories and Torrent Pharmaceuticals were trading lower with marginal losses.
The NDAA includes a revised version of the Biosecure Act, which was first introduced in 2024 but failed to clear Congress at the time. The legislation aims to curb China’s influence in US biotech supply chains and address concerns related to biotech espionage.
The US Senate passed the nearly $1 trillion defence policy bill on Wednesday, following its approval by the House of Representatives last week. With Senate clearance, the legislation now moves to the White House for President Donald Trump’s signature to become law. Market participants expect India to be among the key beneficiaries as US companies reassess supply chain risks, supporting gains in Indian pharmaceutical stocks.
