Pharma Stocks Outlook
for the week – 25 to 29.07.2016
(Apr-Jun results to
set trend; Dr Reddy's eyed)
Stock-specific movement is expected in the pharmaceutical
sector next week with market participants
keeping a close watch on Apr-Jun earnings of companies. A
number of pharma companies will detail
their financial results next week. Focus will be on shares
of Dr Reddy's Laboratories, which is
scheduled to release its earnings on Tuesday.
Other companies in the sector that will detail earnings next
week are Unichem Laboratories, Ajanta
Pharma, Bliss GVS Pharma, Torrent Pharmaceuticals,
GlaxoSmithKline Pharmaceuticals, Indoco
Remedies, Sun Pharma Advanced Research Co, and Alembic
Pharma.
While earnings will drive the trend in pharma stocks, the
overall bias is seen positive due to easing of
regulatory concerns and improved pace of product approvals
in the US, the main market for most
pharma companies. This week, Sun Pharmaceutical Industries,
Glenmark Pharmaceuticals, and
Aurobindo Pharma got approval from the US Food and Drug
Administration for their generic of
cholesterol drug Crestor. Overseas players like Mylan and
Teva Pharmaceutical Industries also got
approval for generic of Crestor.
With so many companies receiving approvals for Crestor
generic, at least six-eight generics are
expected during the exclusivity period in the US, though
only few companies could compete with high volume.
