INSUBCONTINENT EXCLUSIVE:
The sector was underperforming for last three years amid pricing policy in the US generics markets, patent protection and regulatory
The recent rally in pharma stocks is different, says CLSA
The global brokerage firm believes the stocks outperformed on the back of improving fundamentals in the US, which include recent good
approvals for select companies and early signs of monetisation of RD initiatives taken over the last 3-4 years
Sun Pharma recently said the US Food and Drug Administration (FDA) cleared its Halol drug plant, which had been under supply restrictions
due to quality control failures.
The company will now be able to restart supplies to its largest market, the US, from the Halol facility in
have rallied more than 20 per cent in June so far
Other pharma majors including Cipla, Lupin, Cadila Healthcare, Glenmark Pharmaceuticals and Aurobindo Pharma have jumped between 10 and 18
stocks falling up to 45 per cent
Limited new product launches in the generics space, GST introduction and higher costs associated with regulatory compliance also affected
the sector during the period.
Some analysts see pharma as a good contra play in the current environment
The only challenge here is when they would start performing
We have seen bouts of performance from news flows coming in
