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Stocks of major pharmaceutical companies are likely to trade in a range with a slightly negative bias during the coming week. With curtains on the earnings season, there is unlikely to be much activity in the sector stocks during the coming week. The only issue that could cause movement in pharmaceutical counters is the long overdue National Pharmaceutical Pricing Policy. The policy has been pending since 2003. The Supreme Court has now given a Nov 27 deadline for announcement of its details. The government is likely to make some announcement regarding the policy next week. Growth in the sector is seen under pressure till the pricing policy details are out, and counters of multinational companies such as GlaxoSmithKline Pharmaceuticals, Pfizer Ltd and Abbott Pharmaceuticals are likely to take cues from the specifics outlined, India being one of their biggest markets. Last month, a Group of Ministers formed to decide the National Pharmaceutical Pricing Policy recommended that the weighted average price of all drug brands with over 1% market share in a segment should be fixed as the ceiling price of that particular drug. The move will bring prices of 348 essential drugs under government purview. The panel's proposals will be taken up by the Union Cabinet for approval.
