Nomura retained its 'Buy' rating on Gland Pharma and raised its target price to Rs3,750 from Rs3,330, citing a strategic shift towards a more CDMO-centric business model, with CDMO, biologics and in-licensing expected to underpin a guided revenue CAGR of around 20%.
Gland Pharma shares were trading at Rs3,064.50, down 2.73%, at 3:18 pm on the NSE, with the stock's indicative close at Rs3,085.20.
"Fosun Pharma's engagement with GLAND has deepened markedly over the past year," Nomura said, highlighting four priorities: CDMO contracts using Gland Pharma's largest injectable capacity of 1.7 billion units per annum, joint Gland-Cenexi business development, entry into biologics drug substance and drug product, and sourcing innovation assets.
Nomura said the August 2026 CDMO win with a large specialty pharma company reflects a global trend towards "rationalisation of manufacturing networks by large companies" and Gland Pharma's position as a "large cost-efficient manufacturer with a strong regulatory track record".
"We believe GLAND can capitalise more on the trend," the brokerage said, adding that the contract is likely to be extended and that contracts with more pharma companies are also possible. The company has guided for a step-up in capex to address the opportunity.