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With many pharmaceutical companies reporting their Apr-Jun earnings next week, stocks of those companies are largely seen driven by their quarterly numbers. Market will closely watch Ipca Laboratories, Dr Reddy's Laboratories, Glenmark Pharmaceuticals, Sun Pharmaceuticals Industries and Divi's Laboratories as they report their quarterly earnings next week. Ipca Laboratories' top-line is expected to grow by 28.6% to 8.11 bln rupees in Apr-Jun and the operating margin is likely to dip by 100 bps on year to end at 20.8%. Another major pharma player--Dr Reddy's Laboratories--is seen reporting strong numbers in Apr-Jun.
We expect strong growth, with US to sustain momentum QoQ (on quarter); we see benefit from ramp-up in Reclast and isotertinoin to offset pricing pressure. Dr Reddy's Laboratories' margins to come off on quarter due to lower exclusivity sales in Apr-Jun. Mumbai-based Glenmark Pharmaceuticals' Apr-Jun net profit is seen rising 26% on year to 1.5 bln rupees. Revenues growth will be led by 17% growth in India and 14.1% dollar growth in US business to $82 mln on back of new product launches.
Prime large-cap player Sun Pharmaceuticals' Apr-Jun net profit is seen growing 32% on year on the back of higher other income. Wockhardt may continue to face selling pressure next week. The stock has been in a free fall following US Food and Drug Administration questioning the company's good manufacturing practices at its Waluj plant. The US drug regulator accused the company of repeatedly obstructing its team from inspecting the company and adulterating drugs at the plant near Maharashtra, a charge which may, under certain conditions, attract criminal penalties under US laws. "If the market remains weak next week, Ranbaxy Laboratories too may lose.
With many pharmaceutical companies reporting their Apr-Jun earnings next week, stocks of those companies are largely seen driven by their quarterly numbers. Market will closely watch Ipca Laboratories, Dr Reddy's Laboratories, Glenmark Pharmaceuticals, Sun Pharmaceuticals Industries and Divi's Laboratories as they report their quarterly earnings next week. Ipca Laboratories' top-line is expected to grow by 28.6% to 8.11 bln rupees in Apr-Jun and the operating margin is likely to dip by 100 bps on year to end at 20.8%. Another major pharma player--Dr Reddy's Laboratories--is seen reporting strong numbers in Apr-Jun.
We expect strong growth, with US to sustain momentum QoQ (on quarter); we see benefit from ramp-up in Reclast and isotertinoin to offset pricing pressure. Dr Reddy's Laboratories' margins to come off on quarter due to lower exclusivity sales in Apr-Jun. Mumbai-based Glenmark Pharmaceuticals' Apr-Jun net profit is seen rising 26% on year to 1.5 bln rupees. Revenues growth will be led by 17% growth in India and 14.1% dollar growth in US business to $82 mln on back of new product launches.
Prime large-cap player Sun Pharmaceuticals' Apr-Jun net profit is seen growing 32% on year on the back of higher other income. Wockhardt may continue to face selling pressure next week. The stock has been in a free fall following US Food and Drug Administration questioning the company's good manufacturing practices at its Waluj plant. The US drug regulator accused the company of repeatedly obstructing its team from inspecting the company and adulterating drugs at the plant near Maharashtra, a charge which may, under certain conditions, attract criminal penalties under US laws. "If the market remains weak next week, Ranbaxy Laboratories too may lose.
