Pharma Stocks Outlook
for the week – 17 to 21.10.2016
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Earnings of pharmaceutical companies for the September
quarter will be the major trigger
for the sector going forward. As such, the stocks of these
companies might be subdued next
week, as investors maintain caution. The Nifty Pharma index
is likely to trade with a negative
bias in the range of 11300-11550 points next week.
Among companies, Biocon and its subsidiary Syngene
International will report their earnings
on Thursday. Biocon is expected to report a consolidated net
profit of 1.52 bln Rupees for
Jul-Sep. The positive outlook on Biocon due to the recent
approval for insulin glargine in
Japan, as well as positive news pertaining to its insulin
manufacturing facility in Malaysia.
So many speculative investors are expect regulatory issues
to weigh on the earnings of
pharmaceutical companies for the September quarter. Among
the factors that may be
tracked in the companies' earnings would be the impact of a
ban on over 300 fixed-dose
combinations of drugs, as well as price controls in the case
of essential medicines.