This is the biggest trigger behind the surge in Indian Pharma stocks on Friday

The Nifty Pharma index is trading with gains of over 1% on Friday, December 19, after US President Donald Trump signed the FY2026 National Defence Authorisation Act into law.

The US BIOSECURE Act is also included in the NDAA that Trump signed into law.

All constituents on the Nifty Pharma index are trading with gains, led by Wockhardt, which is trading with gains of over 6.5%, followed by Divi's Laboratories, Laurus Labs, Aurobindo Pharma and Biocon, which are trading with gains between 2% to 3.5% on Friday.



Brokerage firm Macquarie is of the view that the Indian Contract Manufacturing (CDMO) market, currently valued at $7 billion, could grow to $20 billion by 2030.

The brokerage said that incremental projects, resulting from the Biosecure Act, are expected to contribute to revenue and earnings only after a lag that will last between 12 months to 24 months.

Macquarie has reiterated its "outperform" recommendation on CDMO companies with a preference for stocks like Divi's Laboratories and Syngene.

In an interaction with CNBC-TV18 earlier this month, the management of Sai Life Sciences said that they are engaged in significant strategic conversations with companies, but meaningful numbers will take some time to reflect in the company's balance sheet.

Sai Life's views on a lag with regards to CDMO projects reflecting in the P&L were corroborated by Nandini Piramal of Piramal Pharma, who maintained the company's financial year 2026 revenue growth guidance of flat growth and margin expansion to be in the low teens.

Piramal Pharma has five sites in North America for API formulations and injectables.

Shares of Both Sai Life and Piramal Pharma are trading with gains of 1.5% each after the announcement.