BP Wealth Broker Research reports

Overall mixed quarter; Growth momentum to continue in domestic business The pharmaceutical companies under our coverage is expected to post a 6.9% (YoY) growth in earnings with a 10.1% (YoY) rise in the revenue base due to decent domestic traction. Lack of meaningful approvals increasing competition in the existing product portfolio leads to muted growth in the US market. However, a substantial ramp-up of albuterol for Lupin and Ilumya uptake to offset Absorica decline for Sun pharma would support the momentum in the US for both these players. Domestic formulations are expected to grow at the higher single-digit to midteen due to continued traction in acute therapies and sustained pick up in chronic pieces. Cost pressures in the form of higher freight costs, marketing spends and raw material cost increases are likely to dent margin, which would slow...