 "MNC pharma shares in focus; Pfizer, Sanofi India, AstraZeneca hit new high")
Shares of multi-national companies (MNC) in the pharmaceutical sector were in focus on Monday with Pfizer, Sanofi India and AstraZeneca Pharma India hitting their respective all-time highs on the BSE in an otherwise range-bound market.
These stocks were up in the range of 2 per cent to 7 per cent on the BSE in intra-day trade so far. Besides, Novartis India rallied 7 per cent to Rs 709, while Abbott India gained 2 per cent to Rs 12,865 on the BSE. In comparison, the S&P BSE Sensex was up marginally by 0.06 per cent at 40,820 points at 12:14 pm.
MNCs (global pharma innovators’ listed Indian subsidiaries) have seen improved performance over the past 12-18 months, with strong double-digit revenue and Ebitda growth.
Analysts at CLSA believe this resurgence is due to their increasing focus on key brands and a rising acceptance of patented products in India. Strong balance sheets, superior return ratios and stable earnings profiles lend defensive characteristics to MNCs.
“We believe growing focus on key brands and rising acceptance for patented products in India have been the key reasons behind this resurgence. MNC stocks have outperformed local peers for the first time in over a decade and have also significantly outperformed the Nifty over the last 18 months,” the brokerage firm said in a recent report on the Indian pharma sector.
Affordable healthcare has been one of the priorities of the Narendra Modi-led government which has resulted in a broadening range of products falling under price controls, as well as the threat of substitution from Jan Aushadhi, a government initiative to promote quality generic-generic drugs at affordable prices. Amid this scenario, MNCs are better placed to thwart competition, thanks to significant brand recall and patented product portfolio, the report added.
These stocks were up in the range of 2 per cent to 7 per cent on the BSE in intra-day trade so far. Besides, Novartis India rallied 7 per cent to Rs 709, while Abbott India gained 2 per cent to Rs 12,865 on the BSE. In comparison, the S&P BSE Sensex was up marginally by 0.06 per cent at 40,820 points at 12:14 pm.
MNCs (global pharma innovators’ listed Indian subsidiaries) have seen improved performance over the past 12-18 months, with strong double-digit revenue and Ebitda growth.
Analysts at CLSA believe this resurgence is due to their increasing focus on key brands and a rising acceptance of patented products in India. Strong balance sheets, superior return ratios and stable earnings profiles lend defensive characteristics to MNCs.
“We believe growing focus on key brands and rising acceptance for patented products in India have been the key reasons behind this resurgence. MNC stocks have outperformed local peers for the first time in over a decade and have also significantly outperformed the Nifty over the last 18 months,” the brokerage firm said in a recent report on the Indian pharma sector.
Affordable healthcare has been one of the priorities of the Narendra Modi-led government which has resulted in a broadening range of products falling under price controls, as well as the threat of substitution from Jan Aushadhi, a government initiative to promote quality generic-generic drugs at affordable prices. Amid this scenario, MNCs are better placed to thwart competition, thanks to significant brand recall and patented product portfolio, the report added.
| COMPANY | LATEST | ALL TIME HIGH | PREV HIGH | PREV DATE |
| ASTRAZENECA PHAR | 2741.70 | 2820.20 | 2805.10 | 31-Oct-19 |
| PFIZER | 4200.00 | 4259.25 | 4199.00 | 22-Nov-19 |
| SANOFI INDIA | 7175.00 | 7225.00 | 7100.00 | 29-Nov-19 |
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