Drugs that give Morgan high: Sun, Reddy's, Lupin, Glenmark
Brokerage house Morgan Stanley has rated Dr Reddy‘s, Sun Pharma, Lupin and Glenmark as its top picks in the pharmaceuticals sector.
January 11, 2013 / 17:15 IST
Moneycontrol Bureau
Brokerage house Morgan Stanley has rated Dr Reddy’s, Sun Pharma, Lupin and Glenmark as its top picks in the pharmaceuticals sector. In its report on the sector, Morgan Stanley has said that key pharma companies should on an average report a 19 percent growth in earnings in 2019, assuming they get their strategies right in emerging markets and on Intellectual Property Rights. This should allow the sector to command a price-to-earning ratio of 18-19 times, Morgan analysts Sameer Baisiwala and Saniel Chandrawat said in their report.Also Read: FMCG, pharma, private banks to remain in focus in 2013"We expect India’s Pharma industry to continue rolling out emerging markets + developing markets business model, which should deliver 19% earnings growth in 2013. IPR (Intellectual Property Rights) should be conspicuous in new clinical data and launch of NDDS/NCE (novel drug delivery system/new chemical entity)drugs this year. Together, these two trends should sustain 18-19 times P/E range," the Morgan note said."We like Dr Reddy’s (under-appreciated US pipeline), Lupin (good mid-term pipeline visibility), Sun (best domestic business, complex technologies, value unlocking) and Glenmark Pharma (NCE research optionality)," the report said. 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!
