Goldman Sachs Advises Shareholders To Sell And Buy Their Stakes In These Firms

Goldman Sachs expects Syngene to benefit from the China+1 trend.

Goldman Sachs was founded in 1869 and is a leading global investment banking, securities, and investment management firm. It significantly impacts the stock market and influences the increase and decrease of stock prices. This firm has advised the shareholders to sell their stakes in two stocks and purchase stakes in the other. It has revised its target prices for Syngene International Limited and Neuland Laboratories Ltd. The target price of the former has been increased by 20 per cent to Rs 875, while Neuland’s target price has risen by 46 per cent to Rs 9,100. On April 12, Syngene’s stock closed at Rs 749.05 on the National Stock Exchange, while Neuland’s stock closed at Rs 6,665.40. Meanwhile, Goldman Sachs has advised the shareholders to sell their shares in pharmaceutical company Laurus Labs Ltd. The firm has said that this share will fall by 23 per cent to Rs 350 and its closing rate on April 12 was Rs 441.90.

Syngene is the country’s largest integrated CRAMS/CRDMO (Contract Research And Manufacturing Services) and (Contract Research, Development and Manufacturing Organization). Syngene offers services to a lot of sectors including pharmaceuticals, biotechnology, and consumer goods. Goldman Sachs expects Syngene to benefit significantly from the China+1 trend due to its end-to-end service capabilities. China Plus One, also known simply as Plus One or C+1, is the business strategy to avoid investing only in China and diversify business into other countries. This strategy can also be used to channel investments into manufacturing in other promising developing economies such as India, Thailand, or Vietnam.

Newland Labs manufactures APIs (active pharmaceutical ingredient (API) is an active component of a specified medicine). With the changes in CDMO (contract development and manufacturing organization) services, Newland Labs has broadened its scope for many more services. These services include the improvement in biotech funding, new capacity at Unit-3 starting late Financial Year 2025, and commercialisation of a large molecule in Financial Year 2026-27. This company is also expected to benefit from the BioSecure Act. In general, the BioSecure Act would prohibit the United States federal funding (including loans, grants, and contracts (including contract extensions and renewals) in connection with biotechnology equipment or services produced or provided by Chinese biotechnology service providers.