Viswanath Pilla Moneycontrol News
Pharma stocks posted gains in the past week with the BJP retaining power in the Gujarat assembly elections. Gujarat has been a major hub of pharmaceutical manufacturing in India, and the BJP win is seen as continuity of the state's industry-friendly policies. Sun Pharma, Cadila Healthcare and Torrent Pharma are based out of Gujarat.
How did pharma index perform?
The BSE Healthcare index gained 2.47 percent this past week, while the benchmark Sensex increased 1.73 percent.
Glenmark (5.51 percent) and Cadila Healthcare (4.31 percent) posted big gains. Stocks of Divis (3.51 percent), Biocon (3.38 percent), Torrent Pharma (2.92 percent), Sun Pharma (2.22 percent), Aurobindo Pharma (1.8 percent), Cipla (1.79 percent) and Lupin (0.98 percent ) have also seen decent gains.
Dr Reddy's (-1.48 percent) was the only stock among big companies that saw dip largely on account of a USD 5 million settlement with US government over a packaging issue.
What kept the sector buzzing
Dr Reddy’s Laboratories has reached a USD 5 million settlement with the US government involving packaging of five blister-packed prescription products. The settlement is expected to impact company's profits in the third quarter.
Also, Dr Reddy's board has given green signal to induct Akhil Ravi, the son-in-law of GV Prasad, Co-Chairman, and CEO of Dr Reddy's into the company management. Akhil Ravi represents third generation of the company leadership.
The Delhi government order cancelling the licence of Max Hospital, Shalimar Bagh, has been stayed by an appellate body, following which the facility resumed its operations this week.
The Court of Financial Commissioner under Delhi Lieutenant Governor stayed the cancellation order issued by the Delhi government.
Prices of syringes and needles are likely to come down sharply as domestic manufacturers have decided to cap trade margins at 75% after the country’s drug price watchdog asked companies to regulate prices.
Medical Technology Association of India (MTaI) — the multinational medical devices lobby group said it supports any government move to regulate trade margins but is against capping of maximum retail prices based on cost-based pricing.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
