Divi's Laboratories has been identified as the top pharmaceutical choice by Citi, with a projected 15% potential increase for the stock. Citi maintains a 'buy' rating for the company and has set a price target of Rs 6,850.

Divi's Laboratories has experienced a significant surge in its shares, with a year-to-date increase of over 52%. This growth reflects strong investor confidence, which is driven by the company's expanding pipeline in the contrast media business.

Recently, a US court decision to halt the FDA's approval of a generic version of Novartis AG's heart failure drug, Entresto, has brought relief to Divi's Labs. The potential launch of a generic version could have posed a significant threat, negatively impacting the sales of the drug that Divi's manufactures for Novartis. It is worth noting that Divi's contract manufacturing organization (CDMO) agreement with Novartis for Entresto accounted for approximately 8% of its total sales and 19% of its CDMO sales for FY24. This highlights the importance of the partnership with Novartis to Divi's Labs' financial well-being.