Pharma Stocks Outlook for the week – 11 to 15.04.2016
(Rangebound;
earnings to provide fresh cues)
( www.rupeedesk.in )
Shares
of pharmaceutical companies may trade in a narrow range next week as investors
await fresh cues from Jan-Mar and 2015-16 (Apr-Mar) earnings that will be released
by companies over the next one-and-a-half month.
The
bias remains weak due to ongoing regulatory issues in a number of pharma companies.
However, we expect Jan-Mar earnings to be better than the previous quarters for
most companies, which is a positive.
Shares
of Lupin and Aurobindo Pharma are likely to gain more, while Sun Pharmaceutical
Industries' shares are seen trading in a range. Shares of Ipca Laboratories
that fell to a 52-week low on account of aggravating regulatory woes are expected
to be under pressure. The Global Fund, which sources Ipca Lab's anti-malaria drugs
for African markets, has decided not buy
the company's products due to pending regulatory issues at its manufacturing
units.
The
company's units at Ratlam, Indore Special Economic Zone, and Silvassa are under
import
alert of the US FDA on account of violations of good manufacturing practices.
Lupin's
stock, which on Mar 29 fell to its lowest level since August 2014 due to the US
Food
and Drug Administration's observations on its manufacturing units, has been
recovering
and is likely to continue its upward movement in the near term.