Pharma Stocks Outlook For The Week – 25 to 29.09.2017

Pharma Stocks Outlook For The Week – 25 to 29.09.2017

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Pharma Stocks Outlook For The Week – 25 to 29.09.2017 )

Notwithstanding the profit booking seen yesterday in pharmaceutical stocks, the outlook on the sector is positive as it is expected that the companies' regulatory issues in the US to be resolved going forward. Sun Pharmaceutical Industries' Halol facility is primarily in focus which received a warning letter in December 2015, to be cleared in an inspection in Oct-Dec. The regulator had inspected the
biggest facility of India's largest drug maker in December last year, but that had resulted in nine adverse observations. The view in the market is that this time Halol will be cleared, and the optimism is driving the stock. The stock has gained over 9% in the last one month. may fall Dr Reddy's Laboratories was a bigger gainer among the pharma constituents of Nifty 50, up by nearly a fourth
during the period. On Thursday, the company said that US FDA has cleared its Srikakulam formulations unit-II. The company is now waiting to hear from the US FDA on its Duvvada formulations unit and Srikakulam bulk drugs plant following an inspection. The situation on the earnings front remains challenging despite improvement in US FDA approval momentum and
clearance for some facilities as the headwinds of intense competition in existing products and client consolidation in the US remain strong. In India, too, companies are facing pricing pressure due to price caps on medicines and the government's push to unbranded generic over branded drugs.

Source : Cogencis Information Services Ltd.