Pharma Stocks Outlook for the week – 24 to 28.04.2017
Pharma Stocks Outlook for the week – 24 to 28.04.2017
( www.rupeedesk.in )
The Pharmaceutical stocks are likely to remain weak as market participants expect companies' earnings for Jan-Mar to be subdued due to pricing pressure in the US and domestic market. We have forecast weak US sales growth on a sequential basis for most companies due to high competition in key products, base business erosion, and limited key launches. The shares of Aurobindo Pharma, which is also expected to report weak earnings, are seen falling to 622 rupees, below which it is likely to find support at 611 rupees. Regulatory issues around many companies' drug manufacturing units are also seen affecting stocks. Yesterday, reports said that US FDA has noted incomplete laboratory records among potential manufacturing violations when it inspected Sun Pharmaceutical Industries' Dadra facility. The regulator had cited 11 adverse observations after its inspection. The observations at the facility were similar to those noted at the company's Halol facility, which received a warning letter in December 2015. The shares of India's largest pharmaceutical company were the worst hit on the Nifty 50 this week as investors grew jittery about its persisting regulatory woes. Earlier this month, Indoco Remedies had also received a warning letter for its Goa facility. Most companies have units that have received warning letters from the US FDA for a unit or the regulator has cited adverse observations for their facilities. Wockhardt is among the worst hit, with three of its facilities at Chikalthana, Waluj, and Ankleshwar under US FDA's import alert. The regulator also issued a warning letter to its arm's Morton Grove facility in March. Next week, shares of the company are expected to trade weak and are seen finding support at 716 rupees.
Source : Cogencis Information Services Ltd.
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Pharma Stocks Outlook for the week – 24 to 28.04.2017
( www.rupeedesk.in )
The Pharmaceutical stocks are likely to remain weak as market participants expect companies' earnings for Jan-Mar to be subdued due to pricing pressure in the US and domestic market. We have forecast weak US sales growth on a sequential basis for most companies due to high competition in key products, base business erosion, and limited key launches. The shares of Aurobindo Pharma, which is also expected to report weak earnings, are seen falling to 622 rupees, below which it is likely to find support at 611 rupees. Regulatory issues around many companies' drug manufacturing units are also seen affecting stocks. Yesterday, reports said that US FDA has noted incomplete laboratory records among potential manufacturing violations when it inspected Sun Pharmaceutical Industries' Dadra facility. The regulator had cited 11 adverse observations after its inspection. The observations at the facility were similar to those noted at the company's Halol facility, which received a warning letter in December 2015. The shares of India's largest pharmaceutical company were the worst hit on the Nifty 50 this week as investors grew jittery about its persisting regulatory woes. Earlier this month, Indoco Remedies had also received a warning letter for its Goa facility. Most companies have units that have received warning letters from the US FDA for a unit or the regulator has cited adverse observations for their facilities. Wockhardt is among the worst hit, with three of its facilities at Chikalthana, Waluj, and Ankleshwar under US FDA's import alert. The regulator also issued a warning letter to its arm's Morton Grove facility in March. Next week, shares of the company are expected to trade weak and are seen finding support at 716 rupees.
Source : Cogencis Information Services Ltd.
