Pharma Stocks Outlook
May outperform market next week due to risk-aversion
This story was originally published at 21:00 IST on 4 October 2024
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MUMBAI - The pharmaceutical sector may outperform the overall market next week too, as investors are likely to remain risk-averse amidst widespread worries over escalating geopolitical tensions, rising bond yields, and the increase in crude oil prices, according to market experts. Caution is also likely to be seen ahead of the policy review of the Reserve Bank of India and start of the corporate earnings for the September quarter, they said.
The Nifty Pharma index fell 1.8% this week, compared to a 4.5% crash in the Nifty 50. Apart from the defensive nature of their business, pharmaceutical companies are finding favour with equity investors because of their growth prospects too. Indian drugmakers and contract firms are set to benefit from the China Plus One strategy of big pharma giants as well as upcoming patent expiries over the next few years, according to analysts.
For the September quarter, the pharmaceutical sector is likely to see double-digit growth in sales and bottomline, driven by the scale-up of complex drug sales in the US, including those of revlimid and mirabegron, healthy growth in the domestic market, and recovery in prices of generics in the US market, brokerage PhillipCapital India Research said in a quarterly preview report.
Stable raw material prices and depreciation of the rupee against the dollar may also aid earnings of drugmakers, the brokerage said. It expects Sun Pharmaceutical Industries Ltd., Zydus Lifesciences Ltd., and Lupin Ltd. to outperform rivals in terms of earnings growth for Jul-Sept, and sees Biocon Ltd. underperforming the most.
TOP HEADLINES
* Alembic Pharma gets US FDA's final nod for Alcaftadine ophthalmic solution
* Biocon arm raises $800 mln via 2029 bonds at 6.67% to refinance debt
* Dr Reddy's signs pact with Gilead to make, sell anti-HIV drug Lenacapavir
* Alembic Pharma gets US FDA final OK for Lamotrigine extended-release tablets
* CCI approves Mankind Pharma's acquisition of Bharat Serums
* JB Chemicals OKs INR 710.5 mln investment to up capacity, set up new line
* Dabur India says consol revenue may fall by mid-single digit in Jul-Sept
* Aurobindo Pharma gets US FDA nod to manufacture, market Cephalexin tablets
* Zydus Life Ahmedabad unit gets 'voluntary action indicated' tag from US FDA
* Sun Pharma in pact to commercialise Philogen's specialty product Fibromun
* Aarti Industries arm to sell entire stake in Nascent Chemical Industries
* Ipca Labs to integrate all US generic formulations ops under one entity
* Piramal Pharma arm to invest $80 mln on US plant capacity expansion
* Dr. Reddy's completes acquisition of Nicotinell brands from Haleon group
* IPO Alert: Amanta Healthcare files DRHP; to issue of up to 12.5 mln shrs
* Aurobindo Pharma arm's Telangana unit receives 10 observations from US FDA
* Jubilant Pharmova's Montreal unit gets US FDA official action indicated tag
* US FDA formally closes inspection of Piramal Pharma's Ahmedabad unit
* US FDA issues 4 observations for Biocon's Bengaluru facility
* Zydus Life gets US FDA final approval for Enzalutamide capsules
* US FDA issues 3 observations each at 2 Pithampur facilities of Lupin
* Dr Reddy's invests $620 mln in Switzerland arm
* CRISIL ups Metropolis Health long-term, NCDs outlook to 'positive'
* Eris Lifesciences gives corporate guarantee of 1 bln rupees for arm
* Alembic Pharma gets establishment inspection report for Panelav unit
* Alkem Labs denies claims of Pan-D, Clavam 625 failing quality test
* SeQuent Scientific Board OKs merger of Viyash Life Sciences with self
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-Week Change in % | Resistance | Support |
| Abbott India | 28104.55 | (-)4.00 | 28837.30 | 27603.70 |
| Alkem Laboratories | 6194.15 | 0.20 | 6435.80 | 5962.50 |
| Aurobindo Pharma | 1466.05 | (-)3.00 | 1513.50 | 1418.50 |
| Biocon | 346.35 | (-)6.10 | 365.60 | 335.50 |
| Cipla | 1623.30 | (-)2.90 | 1698.10 | 1539.90 |
| Divi's Laboratories | 5425.55 | (-)0.60 | 5581.30 | 5307.40 |
| Dr Reddy's Laboratories | 6633.25 | (-)1.70 | 6781.00 | 6537.20 |
| Gland Pharma | 1749.05 | (-)2.00 | 1813.70 | 1707.70 |
| GlaxoSmithKline Pharmaceuticals | 2751.35 | 2.00 | 2806.20 | 2677.10 |
| Glenmark Pharmaceuticals | 1662.70 | (-)1.40 | 1734.10 | 1594.20 |
| Granules India | 569.75 | 2.50 | 615.30 | 537.30 |
| Ipca Laboratories | 1491.40 | 0.90 | 1544.40 | 1426.60 |
| Laurus Labs | 445.15 | (-)4.20 | 472.50 | 429.30 |
| Lupin | 2198.25 | (-)0.90 | 2277.40 | 2123.40 |
| Natco Pharma | 1353.95 | (-)4.20 | 1403.60 | 1320.30 |
| Pfizer | 5616.40 | (-)3.70 | 5853.50 | 5441.50 |
| Sanofi India | 6867.40 | 1.70 | 7031.20 | 6680.10 |
| Sun Pharmaceutical Industries | 1910.05 | (-)2.00 | 1970.60 | 1873.40 |
| Torrent Pharmaceuticals | 3473.55 | (-)0.30 | 3581.00 | 3301.40 |
| Zydus Lifesciences | 1057.35 | (-)1.70 | 1088.40 | 1034.60 |
| Nifty Pharma | 23094.70 | (-)1.80 | 23631.90 | 22714.90 |
| Nifty 50 | 25014.60 | (-)4.50 | 25673.70 | 24637.20 |
| S&P Bse Sensex | 81688.45 | (-)4.50 | 84032.10 | 80360.80 |
End
Reported by Apoorva Choubey
Edited by Manisha Baxla
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