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'Andhra Mid-cap pharmas may offer investment opportunities'

IANS  |  Mumbai 

With Indian big pharma companies getting bogged down due to regulatory issues, mid-cap companies based in may provide opportunities for investors, said Securities on Wednesday in a research report.

The report broadly classifies the based mid-caps into three categories viz., (a) Established formulations players, (b) Emerging formulations players and (c) CRAMS (contract research and manufacturing services) players.

According to the report, Dr. Reddy's Labs has decided to make a strategic shift and deploy a more balanced portfolio, with a mix of plain-vanilla generics and complex generic products for the US market.

The clearance to the Duvvada and Srikakulam facilities in will be the main trigger for re-rating in the near term, the report said.

On the other hand the management of expects 14-15 per cent growth in the US business to be sustained, said the report.

According to Securities, awaits approval for gCopaxone 20mg from the United States Food and Drug Administration (USA FDA), along with which it is likely to launch three to four exclusive products in 2018-19. The company's focus will remain on exploring exclusive opportunities in the US market.

Under the emerging formulations category, Securities said Granules India management believes the year 2019-20 will be growth years.

The management of Laurus Labs expects the US business to constitute one third of the total business and the CRAMS business to touch Rs 5 billion by 2020-21.

The Securities report said the management of Divis Labs appeared confident of resolving the issues with USFDA pertaining to its second unit at Vishakapattnam while the other CRAMS company Suven Life expects 15 per cent business growth to continue.

As to Neuland Labs, the report said niche active pharmaceutical ingredients (API) business traction is improving.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 15 2017. 18:50 IST