GLP-1 drug and impact on pharma companies – some gainers, some losers

Brokerage firm UBS, in its latest note on the pharma sector, said the generic GLP-1 segment is likely to remain intensely competitive across the industry.

On stocks, UBS maintains a ‘Buy’ on Sun Pharma, citing its strong positioning backed by innovative products and a robust pipeline to drive earnings growth.

Cipla is rated ‘Neutral’, with the brokerage flagging near-term disruptions in lanreotide supply, although it sees a healthy pipeline of launches from late FY27E.
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Aurobindo Pharma also carries a ‘Neutral’ rating, with diversification efforts progressing steadily, but execution in FY27–28 seen as critical.

UBS has a ‘Sell’ rating on Dr Reddy’s, citing its high dependence on generic GLP-1 opportunities with limited alternative growth triggers.

Lupin and Zydus Lifesciences are also rated ‘Sell’, as both rely on one-off drivers, even as the Mirabegron settlement offers some near-term relief.