The November 13-17 week was a lacklustre one for pharma stocks. US approval of Cipla’s anti-asthma drug and Eris Lifesciences acquisition of Strides Shasun‘s India branded business were the highlights of the week. Sun Pharmaceutical Industries and Cadila Healthcare second quarter results were the major result announcements this week.
The BSE Healthcare index dropped 0.9% this week while the benchmark Sensex declined 0.16%. Cipla and Torrent Pharma were the biggest gainers in the pharma space, up 2.58% and 2.39%, respectively.
While Aurobindo Pharma and Cadila Healthcare were the biggest losers, down 5.13% and 3.8%, respectively. Other stocks that ended the week in the red include Sun Pharmaceutical Industries (-1.51%) Dr Reddy’s Laboratories (-0.91%), Lupin (-0.89%), Glenmark Pharma (-0.27%) and Divi’s Laboratories (-0.16%)
Here’s what kept the sector buzzing:
Cipla received final approval from the US health regulator for an anti-asthma drug. For the year-ended September 30, the drug had sales of $825 million in the US.
Sun Pharma, India’s largest drug maker, reported a 59% YoY decline in its net profit to Rs 912.1 crore in the second quarter ended September due to pricing pressure in the US generics market. Last year, the company benefitted by extending limited competition for its generic blood cancer drug imatinib in the US market.
Sun had reported a net profit of Rs 2,235 crore in the same period last year. Revenues declined 19.5 percent to Rs 6,650 crore as compared to Rs 8,260 crore in the year-ago period.