Pharma Stocks Outlook for the week – 08 to 12.05.2017
Pharma Stocks Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The Pricing and regulatory pressure, both in India and overseas, will continue to weigh on pharmaceutical stocks next week. Even if the broader market falls next week, the traditionally defensive sector is unlikely to see buying. In India, the sector is seen facing issues on multiple fronts. The likely move from branded to unbranded generics in the Indian market is seen putting more pressure on margins. Adding to the sector's woes in India is the government's plan to review the powers of the National Pharmaceutical Pricing Authority and possibly even enhance the scope of Drug (Price Control) Order. Over the last 12 months, "the overall policy confusion that has gripped the sector from an overenthusiastic NPPA" has hit value growth of the domestic market. Recent moves by various authorities to control healthcare costs have placed the issue right at the centre of what could be a bruising public relations battle for the Indian healthcare industry. In the US, regulatory issues are showing no sign of abating. You point at any company and it will have a unit which has a (Form) 483 observation. Among all the companies, Wockhardt, IPCA Laboratories and Divi's Laboratories are the worst hit right now. Three of Wockhardt's facilities at Chikalthana, Waluj, and Ankleshwar are under US Food and Drug Administration's import alert. The regulator had also issued a warning letter to its arm's Morton Grove facility in March. Lupin, though, is facing pricing pressure in the US for its generic of Fortamet and Glumetza after its 6-month exclusivity over the two products ended last year. Prices of the two generic drugs have fallen about 9% since last year, which is going to weigh severely on Jan-Mar.
Source : Cogencis Information Services Ltd.
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Pharma Stocks Outlook for the week – 08 to 12.05.2017
( www.rupeedesk.in )
The Pricing and regulatory pressure, both in India and overseas, will continue to weigh on pharmaceutical stocks next week. Even if the broader market falls next week, the traditionally defensive sector is unlikely to see buying. In India, the sector is seen facing issues on multiple fronts. The likely move from branded to unbranded generics in the Indian market is seen putting more pressure on margins. Adding to the sector's woes in India is the government's plan to review the powers of the National Pharmaceutical Pricing Authority and possibly even enhance the scope of Drug (Price Control) Order. Over the last 12 months, "the overall policy confusion that has gripped the sector from an overenthusiastic NPPA" has hit value growth of the domestic market. Recent moves by various authorities to control healthcare costs have placed the issue right at the centre of what could be a bruising public relations battle for the Indian healthcare industry. In the US, regulatory issues are showing no sign of abating. You point at any company and it will have a unit which has a (Form) 483 observation. Among all the companies, Wockhardt, IPCA Laboratories and Divi's Laboratories are the worst hit right now. Three of Wockhardt's facilities at Chikalthana, Waluj, and Ankleshwar are under US Food and Drug Administration's import alert. The regulator had also issued a warning letter to its arm's Morton Grove facility in March. Lupin, though, is facing pricing pressure in the US for its generic of Fortamet and Glumetza after its 6-month exclusivity over the two products ended last year. Prices of the two generic drugs have fallen about 9% since last year, which is going to weigh severely on Jan-Mar.
Source : Cogencis Information Services Ltd.
