Pharma Stocks Outlook for the week - 27.02.2017 to 03.03.2017
Pharma Stocks Outlook for the week - 27.02.2017 to 03.03.2017
( www.rupeedesk.in )
Stocks of most pharmaceutical companies are likely to rise next week as concerns over the sector's
regulatory issues and pricing pressure in the domestic and US markets are seen factored in the price.
While individual operating metrics remain hostage to company-specific dynamics, we believe that the
overall sector earnings are close to trough and expect sector performance to improve in the coming
quarters on increased approvals/launches in the US and benign domestic conditions. Structurally, our positive bias for domestic-heavy companies with expanding US presence and low US growth hurdle rates (Cipla and Alembic) remains unchanged. Cipla is the top pick for investots as majority of the company's revenue is from India, even as it expands its presence in the lucrative US market. Also expects Cadila Healthcare to trade with a positive bias, the sharp rise seen last week has made the stock a tad expensive at current levels. Last week, the stock soared by nearly a fourth as the US Food and Drug Administration did not issue any observation for deviation from good manufacturing practices after inspections at its Moraiya facility.
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Pharma Stocks Outlook for the week - 27.02.2017 to 03.03.2017
( www.rupeedesk.in )
regulatory issues and pricing pressure in the domestic and US markets are seen factored in the price.
While individual operating metrics remain hostage to company-specific dynamics, we believe that the
overall sector earnings are close to trough and expect sector performance to improve in the coming
quarters on increased approvals/launches in the US and benign domestic conditions. Structurally, our positive bias for domestic-heavy companies with expanding US presence and low US growth hurdle rates (Cipla and Alembic) remains unchanged. Cipla is the top pick for investots as majority of the company's revenue is from India, even as it expands its presence in the lucrative US market. Also expects Cadila Healthcare to trade with a positive bias, the sharp rise seen last week has made the stock a tad expensive at current levels. Last week, the stock soared by nearly a fourth as the US Food and Drug Administration did not issue any observation for deviation from good manufacturing practices after inspections at its Moraiya facility.
