Pharmaceuticals & Biotech. share price target

We expect pharma and healthcare companies under our coverage to report modest growth in Q2FY23 with domestic market supported by demand despite high base.

PHARMA Q2FY23 PREVIEW

The Ministry of Health and Family Welfare has released an updated national list of essential medicines (NLEM) which includes 384 drugs across different therapies.

Managements of DRRD, ARBP and LAURUS confident of near-term growth drivers but see many moving parts in long run

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...

Q4 witnessed significant one offs (M&As, write-offs etc.)- Alembic's Aleor acquisition, Aurobindo's Veritaz acquisition, Biocon's Viatris Biosimilars acquisition, Lupin's Anglo French Drugs CNS & VMS acquisition, Taro's Alchemy acquisition and Sun Pharma's plaintiff settlement. Adjusted PAT is...

OUR TOP POSITIVE PLAYS ARE: Cipla, Abbott India, KIMS, HCG