$GLAND Pharma shares rally 12%, lead Nifty Midcap gainers after strong Q1; Jefferies turns bullish

$GLAND share price: Gland Pharma shares surged nearly 12 per cent on Tuesday, August 11, emerging as the biggest gainer on the Nifty Midcap 100 after the pharmaceutical company posted a strong performance for the June quarter. Following the Q1 results, global brokerage Jefferies upgraded Gland Pharma to ‘Buy’ from its earlier stance and raised the target price to ₹3,350 per share, indicating further potential upside. Jefferies said the company’s growth outlook has strengthened, supported by robust US business, fresh CDMO contracts and increasing exposure to complex products. The brokerage also noted that some of the key operational challenges facing the company appear to be easing. A major contract development and manufacturing organisation (CDMO) agreement and the in-licensing of a differentiated product with a sizeable total addressable market (TAM) were identified as important catalysts for future growth. The brokerage expects Cenexi to move towards breakeven, while new contract wins and Gland Pharma’s focus on complex products could provide additional momentum to earnings in the coming quarters. Overall, Jefferies believes that several of the major concerns surrounding Gland Pharma are gradually receding, improving the company’s medium-term growth prospects and supporting its more constructive view on the stock. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.