Pharma Stocks Outlook for the week (28.05.2012 - 01.06.2012) Stocks of pharmaceutical stocks are seen remaining volatile next week as the May series of derivates expiry on Thursday would keep the broad market fickle. If it so happens, then pharmaceutical stocks, being defensive in nature, are likely to see some lows next week. Pharmaceutical counters will also track the movement of rupee, which ended at 55.370 against a dollar on Friday. Stocks of Sun Pharmaceutical Industries are expected to see limited downside as the company's Jan-Mar consolidated net profit is better-than-expected performance of its arm Taro Pharmaceutical Industries.
Taro Pharmaceutical Industries Ltd, the Israeli subsidiary of Sun Pharmaceutical Industries Ltd, has reported a net profit of $47.3 mln in the quarter-ended March, up 84% from a year ago. Besides Taro's success, Sun Pharma's US business is seen getting a major boost from sales of high-margin cancer drug, generic Lipidox, in the quarter gone by. Sun Pharmaceutical Industries will declare its Jan-Mar earnings on May 29. The stock is also likely to get upbeat following the approval for generic Azelastine hydrochloride from the US Food and Drug Administration. For other major pharmaceutical companies, apart from the broad market's drive, the movement will be news driven. Also, the Group of Minister's decision on the National Pharmaceutical Pricing Policy would impact pharmaceutical counters. The GoM seeks to regulate prices of 348 essential drugs and its combinations sold across the country. The panel had earlier met in April-end, but had deferred its decision on capping the prices of essential medicines due to lack of consensus among stakeholders and the ministries concerned. Also, around 500 pharmaceutical companies, which were sent notice by the Department of Pharmaceuticals to furnish the overcharged amount of drugs as per their estimates, might have to pay a collective penalty of 40 bln rupees for not responding to the notices. If this happens, then major pharma companies are likely to slip next week. Stocks of Dr Reddy's Laboratories and Biocon are seen down on Monday on report the Sri Lankan drug regulator, Cosmetics Devices and Drugs Regulatory Authority, has suspended registration of many bio-similar drugs of Dr Reddy's, Biocon, Wockhardt and Intas Biopharma with immediate effect as these companies have failed to furnish documents mandated by the World Health Organisation. -- You received this message because you are subscribed to the Google Groups "Kences1- Rupeedesk" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/kences1?hl=en.
