Indian pharmaceutical stocks rose sharply on Friday after the US Senate passed the Biosecure Act, part of the 2026 National Defense Authorization Act (NDAA). The new law aims to make the US biotechnology and pharmaceutical supply chains safer by limiting the use of equipment and services from companies linked to countries of concern, especially China.
The legislation bars US federal agencies from buying or contracting biotech products from companies considered risky. Experts believe this will shift demand toward trusted global suppliers, creating opportunities for Indian drugmakers and contract development and manufacturing organisations (CDMOs).
Following the news, Wockhardt emerged as the top gainer, with shares jumping nearly 5%. Laurus Labs and Divi’s Laboratories also saw significant increases. Other companies, including Ajanta Pharma, Biocon, Piramal Pharma, Aurobindo Pharma, and Cipla, recorded smaller gains. The Nifty Pharma index moved higher during mid‑day trading.
Analysts said Indian pharmaceutical companies could benefit as global buyers look for alternatives to Chinese suppliers. India’s CDMOs and generic drug manufacturers have established international approvals and large-scale manufacturing capacity, making them ideal partners for overseas contracts.
The Biosecure Act received strong bipartisan support in the US Senate, passing with 77 votes in favour and 20 against. It now goes to the White House for the president’s approval. While the full impact may take time, industry watchers expect Indian pharma exports to see steady growth as supply chains adjust.
Investors see this as a positive step for India’s pharmaceutical sector, which has long been a major player in global generics and contract manufacturing. The rally highlights confidence that new US rules could open more export opportunities and strengthen India’s role in international biotech and pharma markets.
The development is also part of a broader global trend toward more secure and diversified supply chains. For Indian companies, the Biosecure Act could mark a significant boost in overseas demand over the coming years.
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