Regulatory risks waning in pharma sector: IIFL

After two years of close scrutiny from the United States Food & Drug Association (US FDA), Indian pharmaceutical sector is now seeing some relaxation in terms of clearances. “Regulatory risks are waning in the sector,” says Abhishek Sharma, pharma analyst at IIFL. Hereon, things are expected to move in positive direction for companies. Lupin, last week, received an Establishment Inspection Report (EIR) for its Goa plant for an April 2015 inspection. This gives comfort that the crucial Goa plant will get cleared without many complications, he says.IIFL has an ‘add’ call on the stock, one notch below 'buy' on back of pipeline and expectations from Lupin.Sun Pharma, on the other hand, has a 'reduce' rating. Growth without any major merger & acquisition will be a challenge for the company.Crestor generic, the cancer drug, launched last week will see a 7-player market in India. While companies like Aurobindo and Glenmark are already participating, firms like Torrent will also benefit, Sharma said.Watch video for more..