Pharma Stocks Outlook For The Week - 30.10.2017 To 03.11.2017
Pharma Stocks Outlook For The Week - 30.10.2017 To 03.11.2017
( www.rupeedesk.in )
Movement in the pharmaceutical sector next week will be stock specific as investors await companies' earnings for the September quarter. Lupin, Wockhardt, Dr Reddy's Laboratories, and Glenmark Pharmaceuticals are scheduled to detail their Jul-Sep earnings next week. On Monday, Lupin is expected to report a 37.4% on-year slump in its consolidated net profit to 4.15 bln rupees. Continued weakness in US operations and lack of major launches are expected to hurt the company in the September quarter. On Tuesday, Dr Reddy's Laboratories Ltd is seen reporting a consolidated
net profit 2.6 bln rupees, down 15.7% on year. A fall in the Hyderabad based company's bottom line can also attribute to muted US sales and price erosion for some of its products. Consolidation of distribution channels in the US and focus of the country's drug regulator on increasing the pace of
generic drug approvals has led to severe pricing pressure over the past two years. Adding to the woes is regulatory issues for companies, which have put pressure on their product pipeline. Sun Pharmaceutical Industries and Wockhardt are among the worst hit by regulatory issues. Three of Wockhardt's facilities are under the US Food and Drug Administration's import alert, while one each of its arms Morton Grove Pharmaceuticals and CP Pharmaceuticals have received warning letter from
the US regulator. However, optimism is high after reports earlier this month said the company will soon invite the US FDA to inspect its facilities in Aurangabad and Ankleshwar. The stock has
risen 10.5% this month and hit a one month high of 674 rupees yesterday. For Sun Pharma, the biggest plant at Halol is yet to be cleared by the US drug administrator, after receiving a warning letter in December 2015. Apart from that, three of the company's four facilities it bought with Ranbaxy Laboratories are also under the regulator's import alert. However, we are optimistic about India's largest pharmaceutical company, and expect the Halol unit to be cleared by December as the management has said that they have completed remediation process at the facility. Earlier this month, the US regulator had cleared the company's Dadra facility of 11 observations, which has further fuelled the positive view. The stock has risen 9% this month and also hit a one month high of 557.90 rupees yesterday.
Source : Cogencis Information Services Ltd.
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( www.rupeedesk.in )
Movement in the pharmaceutical sector next week will be stock specific as investors await companies' earnings for the September quarter. Lupin, Wockhardt, Dr Reddy's Laboratories, and Glenmark Pharmaceuticals are scheduled to detail their Jul-Sep earnings next week. On Monday, Lupin is expected to report a 37.4% on-year slump in its consolidated net profit to 4.15 bln rupees. Continued weakness in US operations and lack of major launches are expected to hurt the company in the September quarter. On Tuesday, Dr Reddy's Laboratories Ltd is seen reporting a consolidated
net profit 2.6 bln rupees, down 15.7% on year. A fall in the Hyderabad based company's bottom line can also attribute to muted US sales and price erosion for some of its products. Consolidation of distribution channels in the US and focus of the country's drug regulator on increasing the pace of
generic drug approvals has led to severe pricing pressure over the past two years. Adding to the woes is regulatory issues for companies, which have put pressure on their product pipeline. Sun Pharmaceutical Industries and Wockhardt are among the worst hit by regulatory issues. Three of Wockhardt's facilities are under the US Food and Drug Administration's import alert, while one each of its arms Morton Grove Pharmaceuticals and CP Pharmaceuticals have received warning letter from
the US regulator. However, optimism is high after reports earlier this month said the company will soon invite the US FDA to inspect its facilities in Aurangabad and Ankleshwar. The stock has
risen 10.5% this month and hit a one month high of 674 rupees yesterday. For Sun Pharma, the biggest plant at Halol is yet to be cleared by the US drug administrator, after receiving a warning letter in December 2015. Apart from that, three of the company's four facilities it bought with Ranbaxy Laboratories are also under the regulator's import alert. However, we are optimistic about India's largest pharmaceutical company, and expect the Halol unit to be cleared by December as the management has said that they have completed remediation process at the facility. Earlier this month, the US regulator had cleared the company's Dadra facility of 11 observations, which has further fuelled the positive view. The stock has risen 9% this month and also hit a one month high of 557.90 rupees yesterday.
PHARMA - Down
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Source : Cogencis Information Services Ltd.
