 "Investors in pharma shares lose Rs 30,200 crore in single day")
Investors in pharmaceutical companies have seen wealth erosion of Rs 30,200 crore on Friday after reports suggested that prosecutors at the US Federal Reserve may bring charges of price collusion against a group of generic drug makers before the end of the year. LINK
A combined market capitalisation (m-cap) of top 50 pharmaceutical and healthcare companies listed on the BSE declined to Rs 30,166 crore from Rs 778,327 crore today. These companies had total m-cap of Rs 808,493 crore on Thursday.
Most of the pharmaceutical shares were under pressure with the S&P BSE Healthcare index recording its sharpest fall in past 14-months. Earlier, the index ended lower by 6.8% on August 24, 2015.
Most of the pharmaceutical shares were under pressure with the S&P BSE Healthcare index recording its sharpest fall in past 14-months. Earlier, the index ended lower by 6.8% on August 24, 2015.
S&P BSE Healthcare index, the largest loser among sectoral indices, was down 4.2% at 15,150, as compared to 0.57% decline in the S&P BSE Sensex at 27,274.
Thus far in the current calendar year 2016, the pharma index has underperformed the market by falling 10.4% against 4.4% rise in the benchmark index.
Sun Pharmaceutical Industries, the biggest loser in m-cap term, lost Rs 12,575 crore of investors’ wealth. Dr Reddys Laboratories eroded Rs 3,156 crore, followed by Aurobindo Pharma (Rs 2,528 crore), Lupin (Rs 2,376 crore) and Glenmark Pharmaceuticals (Rs 1,232 crore).
Sun Pharma, Dr Reddys Laboratories, Sequent Scientific, Bliss GVS Pharma, Suven Life Sciences, Jubilant Life Sciences, Strides Shasun, Aurobindo Pharma, Dishman Pharmaceuticals and Chemicals and Marksans Pharma were down more than 5% each on BSE.
| Price on BSE in Rs | M-cap loss | |||
| Company | 03/11/2016 | 04/11/2016 | % chg | Rs crore |
| Sun Pharma.Inds. | 705.00 | 652.75 | -7.4 | -12575 |
| Dr Reddy's Labs | 3262.00 | 3077.20 | -5.7 | -3156 |
| Aurobindo Pharma | 769.95 | 726.75 | -5.6 | -2528 |
| Lupin | 1473.55 | 1420.90 | -3.6 | -2376 |
| Glenmark Pharma. | 912.45 | 868.80 | -4.8 | -1232 |
| Cipla | 559.05 | 544.50 | -2.6 | -1170 |
| Ajanta Pharma | 1940.80 | 1867.35 | -3.8 | -646 |
| Jubilant Life | 659.10 | 621.90 | -5.6 | -593 |
| Strides Shasun | 1123.75 | 1060.40 | -5.6 | -566 |
| Alkem Lab | 1619.95 | 1573.40 | -2.9 | -557 |
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