Pharma Stocks Outlook for the week – 15 to 19.05.2017
Pharma Stocks Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
The earnings of pharmaceutical companies for the March quarter will be the major trigger for the stocks of these companies next week, as investors brace for weak results due to pressure in both domestic and US markets. This week, while the earnings of Dr Reddy's Laboratories missed estimates, Glenmark Pharmaceuticals scaled down its guidance for sales during the exclusivity period for the Zetia generic in the US market. Glenmark's management said that the company expects sales of the generic of Zetia in the US to be lower than $200 mln during the exclusivity period. The company had guided for sales of $200 mln-$250 mln. IDBI Capital downgraded the Glenmark stock to 'hold' to incorporate a lower pick-up in sales of the Zetia generic. Stocks of Dr Reddy's are seen weak on charts. Sun Pharmaceutical Industries, Lupin, Cipla, Aurobindo Pharma, and Cadila Healthcare are likely to report their earnings later this month. Earnings of pharmaceutical companies are seen weighed down by a stronger rupee, and pricing and regulatory pressure both in India and overseas. The government's support for unbranded generic drugs and its likely plan to enhance the scope of the Drug (Price Control) Order are seen weighing on profitability on the domestic front. In the US, consolidation of distribution channels, greater competition, and regulatory issues are the major headwinds for Indian companies, apart from strength in the rupee against the dollar. At 64.2975, the rupee has strengthened over 5% against the dollar so far this year.
Source : Cogencis Information Services Ltd.
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Pharma Stocks Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
The earnings of pharmaceutical companies for the March quarter will be the major trigger for the stocks of these companies next week, as investors brace for weak results due to pressure in both domestic and US markets. This week, while the earnings of Dr Reddy's Laboratories missed estimates, Glenmark Pharmaceuticals scaled down its guidance for sales during the exclusivity period for the Zetia generic in the US market. Glenmark's management said that the company expects sales of the generic of Zetia in the US to be lower than $200 mln during the exclusivity period. The company had guided for sales of $200 mln-$250 mln. IDBI Capital downgraded the Glenmark stock to 'hold' to incorporate a lower pick-up in sales of the Zetia generic. Stocks of Dr Reddy's are seen weak on charts. Sun Pharmaceutical Industries, Lupin, Cipla, Aurobindo Pharma, and Cadila Healthcare are likely to report their earnings later this month. Earnings of pharmaceutical companies are seen weighed down by a stronger rupee, and pricing and regulatory pressure both in India and overseas. The government's support for unbranded generic drugs and its likely plan to enhance the scope of the Drug (Price Control) Order are seen weighing on profitability on the domestic front. In the US, consolidation of distribution channels, greater competition, and regulatory issues are the major headwinds for Indian companies, apart from strength in the rupee against the dollar. At 64.2975, the rupee has strengthened over 5% against the dollar so far this year.
Source : Cogencis Information Services Ltd.