Wyeth has target of Rs 850, says Ranjit Kapadia, VP - Institutional Research, HDFC Securities.
Kapadia told CNBC-TV18, "The pharma sector will be an outperformer because if you look at it globally now, a lot of merger, amalgamation deals that were conceived about two quarters back during the recession, when most of the companies were vulnerable to a takeover. Now the deals are really happening. If you look at the latest deals, Solvay has been taken over for USD 6.6 billion by Abbott . We all heard the 18% stake of a biotech company Crucell, by Johnson & Johnson. These global deals are likely to continue and more and more deals are likely to fructify in the near future."
He further added, "My top pick in the CRAM space is Dishman Pharma. With the acquisition of Solvay Pharma by Abbott, we feel that Dishman is likely to benefit on two grounds, one is that Solvay's business is going into big hands, Abbott, which is a bigger company than Solvay. Secondly, whatever contracts are there, they will be intact. There is a possibility that Dishman may get additional contracts from Abbott in future based on this deal. Price target on Wyeth is Rs 850."
