Pharma weekly wrap: Pharma stocks gain on investor interest due to cheap valuations
The BSE Healthcare rose 4.44 percent in the past week, the benchmark Sensex gained 1.49 percent
Pharma stocks rose sharply this past week after a poor show previous week on the back of renewed investor interest in the sector owing to under-valuations.
The BSE Healthcare rose 4.44 percent in the past week, the benchmark Sensex gained 1.49 percent.
Divi’s Laboratories was the biggest gainer, rising 20.72 percent this past week on reports that the company’s manufacturing unit, which is under import alert, is undergoing an inspection from the US drug regulator. Sun Pharma, India's largest drugmaker gained 11.77 percent as Credit Suisse upgraded the stock to “outperform” from “neutral.”
The other stocks that gained include Glenmark (5.67 percent), Lupin (3 percent), Dr Reddy’s (2.36 percent), Aurobindo Pharma (2.35 percent), Cipla (1.57 percent), Torrent Pharma (1.45 percent), and Cadila Healthcare (0.83 percent).
Here's What Kept the Sector Buzzing:
Pharma major Lupin has started to rationalise its R&D operations. The company has decided to scale down the drug discovery programme to focus on more near-term and mid-term opportunities.Dr Reddy's Laboratories said the US health regulator has made three observations after inspecting its UK facility. The company's earlier this week said its wholly owned subsidiary Aurigene Discovery Technologies is planning to initiate a Phase 2 trial of CA-170, a PDL1-VISTA inhibitor to be conducted at sites in India.