Pharma stocks extended their gains this week as the US FDA approval momentum continued. GST rollout was also a highlight of the week.
How did pharma index perform?
The pharma stocks surged as investors flocked to take advantage of low valuations. Some momentum in the United States Food and Drug Administration (US FDA) approvals also aided buying sentiments.
The BSE Healthcare index gained 0.96 percent this past week, while the benchmark Sensex increased 0.66 percent.
Lupin (5.3 percent), Dr. Reddy’s (0.64 percent), Aurobindo Pharma (1.65 percent), Glenmark (5.12 percent), Torrent (7.07 percent), and Divis (4.8 percent) have gained.
However, other names Sun Pharma (-1.82 percent), Cipla (-2.49 percent), and Cadila Healthcare (-2.03) declined.
Here's what kept the sector buzzing:
US FDA approvals
the generic ophthalmic solution Vigamox in the US. The drug used for treatment of bacterial conjunctivitis has sales of USD 267.9 million.
Glenmark got approval for generic hypertension medication Amlodipine and Olmesartan Medoxomil Tablets. Cadila Healthcare received three approvals this week.
The GST rollout is expected to hit
Q1 domestic formulation sales of India drug makers owing to the de-stocking of trade inventory.
According to research firm AIOCD Pharmasofttech AWACS, inventory levels of drugs at stockists have dropped from 40 days at the end of May to 17 days as on June 28.
Sun Pharma outsources Tildrakizumab manufacturing to Samsung
Sun Pharma, India's largest drug maker, said it has entered into a strategic agreement
with Samsung BioLogics to manufacture the former's psoriasis drug Tildrakizumab.
India bats for IPR flexibilities
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The government this past week said it firmly believes that the global intellectual property regimes
encourage the use of Trade Related Aspects of Intellectual Property Rights (TRIPS) flexibilities. The governmentm stating its position before the 26th session of the Standing Committee on the Law of Patents (SCP) at the World Intellectual Property Organisation (WIPO), Geneva, said it's also against patent-evergreening.
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