Pharma Stocks Outlook for the week – 29.05.2017 to 02.06.2017
Pharma Stocks Outlook for the week – 29.05.2017 to 02.06.2017
Pharmaceutical companies will continue to be under pressure next week due to weak earnings for the March quarter and uncertainties in both domestic and the US markets. This week, the Nifty Pharma index slumped nearly 11% as investors sold shares on account of worry over the US Food and Drug Administration's observations, delay in product approvals, and a slowdown in growth prospects for Indian drug companies in the US. In the domestic market, there are uncertainties over the Goods and Services Tax, pricing regulations and the government's emphasis on generic drugs as against branded ones. Sun Pharmaceutical is likely to continue falling next week after it reported, post market hours yesterday, its lowest consolidated net profit in the last seven quarters and worst net sales in five quarters as the company grappled with challenges in its US operations. Stocks of India's largest
pharmaceutical company may fall. This week, the stock has slumped 13.5% on account of the company's weak Jan-Mar earnings and bleak business outlook for the current financial year. Glenmark Pharmaceuticals is also expected to continue its decline next week. The stock has slumped by nearly a third after giving a weak guidance for sales from its generic of anti-cholesterol drug Zetia, on which it as a six-month exclusivity. In a post earnings conference call, the company said its generics business in the US was under severe stress and that revenue may grow in a single digit in 2017-18 (Apr-Mar) due to price erosion in the US, increased competition, and supply channel consolidation.
Source : Cogencis Information Services Ltd.
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Pharma Stocks Outlook for the week – 29.05.2017 to 02.06.2017
( www.rupeedesk.in )
Pharmaceutical companies will continue to be under pressure next week due to weak earnings for the March quarter and uncertainties in both domestic and the US markets. This week, the Nifty Pharma index slumped nearly 11% as investors sold shares on account of worry over the US Food and Drug Administration's observations, delay in product approvals, and a slowdown in growth prospects for Indian drug companies in the US. In the domestic market, there are uncertainties over the Goods and Services Tax, pricing regulations and the government's emphasis on generic drugs as against branded ones. Sun Pharmaceutical is likely to continue falling next week after it reported, post market hours yesterday, its lowest consolidated net profit in the last seven quarters and worst net sales in five quarters as the company grappled with challenges in its US operations. Stocks of India's largest
pharmaceutical company may fall. This week, the stock has slumped 13.5% on account of the company's weak Jan-Mar earnings and bleak business outlook for the current financial year. Glenmark Pharmaceuticals is also expected to continue its decline next week. The stock has slumped by nearly a third after giving a weak guidance for sales from its generic of anti-cholesterol drug Zetia, on which it as a six-month exclusivity. In a post earnings conference call, the company said its generics business in the US was under severe stress and that revenue may grow in a single digit in 2017-18 (Apr-Mar) due to price erosion in the US, increased competition, and supply channel consolidation.
Source : Cogencis Information Services Ltd.
