Pharma Stocks Outlook For The Week - 03 to 06.10.2017
Pharma Stocks Outlook For The Week - 03 to 06.10.2017
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Stocks of pharmaceutical companies are likely to trade on a mixed note next week as investors are divided in their view over the sector. There is a lot of uncertainty about Pharma stocks in the market. If there is one positive news (story), there is another or may be two negative news about the same company. So we remain cautious on the sector. However, we are positive on stocks as regulatory issues of many companies have been resolved. Earlier this week, Sun Pharmaceutical Industries Ltd Managing Director Dilip Shanghvi at the annual general meeting said the company has completed remediation process at the Halol facility and is now awaiting re-inspection by the US Food and Drug Administration. India's largest drugmaker had indicated that it expected the US FDA to re-inspect the facility in Oct-Dec. A successful inspection of the Halol facility, which received a warning letter in December 2015, will be a major positive trigger not just for Sun Pharmaceutical Industries, but even the rest of the sector. However, we are cautious on the company as the US FDA had re-inspected the unit in November last year and issued nine adverse observations. Wockhardt was another company which had positive news coming its way this week. The company has reportedly invited the US regulator to re-inspect its unit at Waluj in Maharashtra after it received an import alert in 2013. However, three of Wockhardt's own facilities are under the US FDA's import alert, while one each of its arms Morton Grove Pharmaceuticals and CP Pharmaceuticals have received warning letter from the regulator. The plaguing regulatory issues over companies are among the reasons for caution. Apart from regulatory issues, there are also pricing concerns in the US due to consolidation of distribution channels. 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.
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( www.rupeedesk.in )
Stocks of pharmaceutical companies are likely to trade on a mixed note next week as investors are divided in their view over the sector. There is a lot of uncertainty about Pharma stocks in the market. If there is one positive news (story), there is another or may be two negative news about the same company. So we remain cautious on the sector. However, we are positive on stocks as regulatory issues of many companies have been resolved. Earlier this week, Sun Pharmaceutical Industries Ltd Managing Director Dilip Shanghvi at the annual general meeting said the company has completed remediation process at the Halol facility and is now awaiting re-inspection by the US Food and Drug Administration. India's largest drugmaker had indicated that it expected the US FDA to re-inspect the facility in Oct-Dec. A successful inspection of the Halol facility, which received a warning letter in December 2015, will be a major positive trigger not just for Sun Pharmaceutical Industries, but even the rest of the sector. However, we are cautious on the company as the US FDA had re-inspected the unit in November last year and issued nine adverse observations. Wockhardt was another company which had positive news coming its way this week. The company has reportedly invited the US regulator to re-inspect its unit at Waluj in Maharashtra after it received an import alert in 2013. However, three of Wockhardt's own facilities are under the US FDA's import alert, while one each of its arms Morton Grove Pharmaceuticals and CP Pharmaceuticals have received warning letter from the regulator. The plaguing regulatory issues over companies are among the reasons for caution. Apart from regulatory issues, there are also pricing concerns in the US due to consolidation of distribution channels. 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.
Sunpharma - Up
Cadila Healthcare - Up
Cipla - Down
Lupin - Up
Auropharma - Up
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Source : Cogencis Information Services Ltd.
