Shares of pharmaceutical companies were in focus, trading higher by up to 7% on the bourses in otherwise range-bound market. Sun Pharmaceutical Industries, Unichem Laboratories, Ipca Laboratories, Wockhardt, Marksans Pharma, Cadila Healthcare and Aurobindo Pharma were up in the range of 3% to 8%.
At 12:18 PM; Nifty Pharma index, the largest gainer among sectoral indices, was up 2.6% as compared to 0.02% decline in the Nifty 50 index. The S&P BSE Healthcare index too up 2% against 0.22% rise in the S&P BSE Sensex.
Sun Pharma was up 4.5% to Rs 555 in intra-day trade, extending its Thursday’s 1.5% gain on the BSE, after the company said its subsidiary has received approval from the US health regulator to market generic version of GSK’s Coreg CR, extended release capsules in the American market.
Meanwhile, Indian pharmaceutical companies are expected to post better results in the second quarter as compared to the first quarter of the current fiscal, following recovery in the domestic business and several launches in the US market, a report says.
“Pharma companies would report a sequential respite in earnings as domestic business stages a rebound after Goods and Service Tax (GST)-led woes dampened what was already a bruising US operating environment in the previous quarter. YoY we still expect pain to linger as an elevated 10-12% price erosion and high base of F17 lead to unfavourable comparison,” analyst at IIFL Wealth Management said in Q2FY18 result preview.
“The pharmaceutical companies under our coverage universe are expected to report a muted performance on YoY basis in Q2FY18 due to multiple headwinds in the US led by increasing pricing pressure, lack of niche opportunities and channel consolidation. However, we see sequential improvement on account of lower base and rebound in domestic formulation business,” the brokerage firm Reliance Securities said in results preview.
Domestic formulation business of these companies was adversely impacted in 1QFY18 on the back of challenges relating to GST (inventory de-stocking by trade channels in run-up to roll-out). However, we expect Q2FY18 to be stronger than Q1FY18 owing to inventory re-stocking at retailers’ level, added report.
“Sequentially earnings will benefit from rebound in India business post the slump in Q1FY18; and sales of gLialda (Cadila Healthcare), gRenvela (Aurobindo Pharma) and gVytorin (Dr Reddy’s Laboratories), although impact due to end of gTamiflu, gZetia and competition in gGlumetza (LPC) is anticipated,” according to analysts at Edelweiss Securities.
|J B CHEM & PHARM||284.1||276.1||2.92|
|DR REDDY’S LABS||2389.8||2345.7||1.88|
- COVID case rates hit new high for England, study finds - April 7, 2022
- Govt’s focus on affordable healthcare ensured significant savings for poor, middle class: PM Modi - April 7, 2022
- SRL Diagnostics and Skye Air Mobility collaborate to transport pathology samples using drone logistics - April 6, 2022
- Healthineers sets up new production line of CT scanners in Bengaluru under PLI scheme - April 6, 2022
- Lupin inks licensing pact with Alvion to market drugs in Southeast Asia - April 6, 2022
- Yoga Mahotsav: Ayush Ministry to organise event to demonstrate common yoga on World Health Day - April 6, 2022
- LordsMed forays into the medtech space with launch of health ATMs ‘Lords Sehat’ - April 5, 2022
- ‘Friendly viruses’ can be the next big thing in the history of medical research and more - April 5, 2022
- No setback to Bharat Biotech even as WHO suspends Covaxin UN supply: Sources - April 4, 2022
- Govt panel recommends Serum’s Covovax dose for kids aged 12 and above - April 4, 2022