Pharma Stocks Outlook for the week – 10 to 14.04.2017
Pharma Stocks Outlook for the week – 10 to 14.04.2017
( www.rupeedesk.in )
Stocks of most pharmaceutical companies are expected to be subdued next week, as investors remain
concerned about the appreciation of the rupee, which is seen hitting the earnings of the export-oriented sector. In the short term, the stronger rupee is causing uncertainty for the sector. Yesterday, the rupee ended at 64.28 a dollar, against the previous close of 64.51. With this, the rupee appreciated for the seventh consecutive week. Companies in the Indian pharmaceutical sector are likely to face more pressure, as the government has formed a panel to review the pricing of essential medicines to make them more affordable. It has also released a draft rule to make it mandatory for drug-makers to highlight generic names more than companies' own brand names on medicine packets. Analysts say that strengthening of the Indian currency against the greenback is the most significant trigger for Indian pharmaceutical companies. Market participants are also keeping a close watch on companies' regulatory issues. Among them, resolution of a warning letter issued to Sun Pharmaceutical Industries' Halol unit in December 2015 is the most keenly awaited. Next week, stocks of India's largest pharmaceutical company are expected to be weak. After a 6% rise this week, shares of Wockhardt had stabilised. Investors may start taking positions ahead of analysts' estimates of companies' earnings for Jan-Mar. Indian pharmaceutical companies have been facing challenges posed by increase in the US Food and Drug Administration's. Observations, delay in approvals, pricing pressure and channel consolidation in the US. On a sequential basis, we expect 4QFY17 (Jan-Mar) to be largely flattish for companies under our coverage universe. We expect Glenmark Pharmaceuticals' 180-day exclusivity on the generic of cholesterol lowering drug Zetia to boost its earnings.
Source : Cogencis Information Services Ltd.
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Pharma Stocks Outlook for the week – 10 to 14.04.2017
( www.rupeedesk.in )
concerned about the appreciation of the rupee, which is seen hitting the earnings of the export-oriented sector. In the short term, the stronger rupee is causing uncertainty for the sector. Yesterday, the rupee ended at 64.28 a dollar, against the previous close of 64.51. With this, the rupee appreciated for the seventh consecutive week. Companies in the Indian pharmaceutical sector are likely to face more pressure, as the government has formed a panel to review the pricing of essential medicines to make them more affordable. It has also released a draft rule to make it mandatory for drug-makers to highlight generic names more than companies' own brand names on medicine packets. Analysts say that strengthening of the Indian currency against the greenback is the most significant trigger for Indian pharmaceutical companies. Market participants are also keeping a close watch on companies' regulatory issues. Among them, resolution of a warning letter issued to Sun Pharmaceutical Industries' Halol unit in December 2015 is the most keenly awaited. Next week, stocks of India's largest pharmaceutical company are expected to be weak. After a 6% rise this week, shares of Wockhardt had stabilised. Investors may start taking positions ahead of analysts' estimates of companies' earnings for Jan-Mar. Indian pharmaceutical companies have been facing challenges posed by increase in the US Food and Drug Administration's. Observations, delay in approvals, pricing pressure and channel consolidation in the US. On a sequential basis, we expect 4QFY17 (Jan-Mar) to be largely flattish for companies under our coverage universe. We expect Glenmark Pharmaceuticals' 180-day exclusivity on the generic of cholesterol lowering drug Zetia to boost its earnings.
Source : Cogencis Information Services Ltd.
