GOLDEN RULES FOR TRADING

Pharma Stocks Outlook for the week – 25 to 29.04.2016 (Stock-specific movement likely; earnings eyed)

Pharma Stocks Outlook for the week – 25 to 29.04.2016
(Stock-specific movement likely; earnings eyed)

Stock-specific movement is likely in the pharmaceutical space in the coming week with
investors keeping an eye on earnings for the Jan-Mar quarter. Biocon and its listed arm,
Syngene International, will release earnings on Tuesday, Alembic Pharmaceuticals on
Wednesday, Granules India on Thursday and Ajanta Pharma and Sanofi India on Apr
29.

Bengaluru based Biocon's consolidated net profit is seen down 45.3% on year at 1.10
bln rupees and net sales up 6.2% at 8.81 bln rupees during Jan-Mar. Alembic's Pharma's
consolidated net profit is likely to rise 133.1% on year to 1.64 bln rupees and net sales
may increase 55.8% to 7.82 bln rupees.

Glenmark Pharmaceuticals, which rose 4% this week, may continue see some
consolidation next week. Easing concerns over regulatory issues at Glenmark's Indore
plant are likely to provide support to the stock.

The three observations made by the US Food and Drug Administration on Glenmark's
Indore unit are benign and not related to data integrity. The fact that Glenmark has
received two product approvals in the US from the Indore plant post FDA observations
also eases concerns over any holdback of approvals by the regulator.