Pharmaceutical stocks are likely to rise next week due to defensive nature of the shares amid a volatile broad market. Next week, benchmark indices will take cues from overseas markets with all eyes on US Federal Reserve Chairman Ben Bernanke's speech yesterday at Jackson Hole, but the bias may be negative.
Some stock-specific movements are also expected among pharmaceutical stocks. Stocks of Sun Pharmaceutical are seen gaining next week as the company said the US Food and Drug Administration has found its subsidiary Caraco's Michigan facility to be in compliance with the requirements of the consent decree. Caraco can now commence manufacturing operations at the facility. Clearance of the Michigan facility by the FDA is a marginal positive, in our view, and is in line with our expectations. Clearance would be granted on a product-by-product basis and we expect a gradual ramp up in manufacturing.
(www.rupeedesk.in)
Some stock-specific movements are also expected among pharmaceutical stocks. Stocks of Sun Pharmaceutical are seen gaining next week as the company said the US Food and Drug Administration has found its subsidiary Caraco's Michigan facility to be in compliance with the requirements of the consent decree. Caraco can now commence manufacturing operations at the facility. Clearance of the Michigan facility by the FDA is a marginal positive, in our view, and is in line with our expectations. Clearance would be granted on a product-by-product basis and we expect a gradual ramp up in manufacturing.
(www.rupeedesk.in)
