Pharma Stocks Outlook for the week (06 - 10.08.2012)

[rupeedesk]

Pharma Stocks Outlook for the week (06 - 10.08.2012)

Apr-Jun earnings are seen influencing action in pharmaceutical stocks next week as many companies are set to detail their quarterly numbers in the coming week. Bullish on Divi's Laboratories and Cadila Healthcare that are reporting their Apr-Jun results on Saturday and Monday, respectively. Investors would also be looking at Aurobindo Pharma's earnings that will be detailed Tuesday. Stocks of Ranbaxy Laboratories are likely to gain next week on talks the company is set to launch a diabetes-treating drug Actos in the US market by mid-August. The company, in 2010, had resolved a patent litigation with Japan-based company Takeda Pharmaceutical Co whereby the latter had granted a non-exclusive royalty free licence to its US patents covering Actos to Ranbaxy. Sun Pharmaceutical Industries' stocks are also seen gaining momentum next week on the company's likely acquisition of UK-based pharmaceutical company Stada. 

However, given the economic crisis in the eurozone region, it would be hard to turn the company around, which should be negative for Sun Pharmaceutical in the long run. So far, pharmaceutical companies have reported exceptionally well numbers in Apr-Jun with around 20% growth in domestic businesses and over 40% growth in the US businesses. Therefore, pharmaceutical stocks are seen outperforming the benchmark indices by around 10% over the next one month. However, stocks of Glenmark Pharmaceuticals may fall next week as the company's consolidated net profit for Apr-Jun fell sharply to 782.75 mln rupees from 2.08 bln rupees last year. This figure is lower than the 1-bln-rupee net profit the Street had expected, as the company suffered a marked-to-market loss of 550 mln rupees.

By RUPEE DESK

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