Pharmaceutical stocks are seen outperforming the benchmark indices next week on news of drug approvals from the US Food and Drug Administration and also on anticipation of new approvals. Most pharmaceutical stocks have reported exceptionally well financial results in Apr-Jun, which is likely to help the stocks gain in the next few weeks. Dr Reddy's Laboratories to gain as the company has received the final approval for generic Topropl XL, which has a market value of $1.2 bln. We believe that the product will be a key contributor to Dr. Reddy's US business in the near term.
Ranbaxy Laboratories' in-licensing agreement with Gilead's emtricitabine is seen positive for the stock. Stocks of Sun Pharmaceutical Industries are seen continuing with their gains next week after the company Friday reported better-than-expected quarterly net profit. During the reporting quarter, Sun Pharmaceutical reported a consolidated net profit of 7.96 bln rupees while its consolidated net sales were at 26.58 bln rupees. Sun Pharmaceutical Industries' shares are also seen gaining momentum next week on the company's likely acquisition of UK-based pharmaceutical company Stada.
(www.rupeedesk.in)
