Pharma shares rally post Lupin Q3 results

Lupin, Dishman Pharma, Sequent Scientific, RPG Life, Granules India, and Jubilant Life were more than 5% on BSE.

Shares of pharmaceutical companies have rallied on the bourses after Lupin has reported a better-than-expected net profit for the quarter ended December 31, 2015 (Q3FY16).

Lupin, Dishman Pharmaceuticals, Sequent Scientific, Granules India, Jubilant Life Sciences, RPG Life Sciences and Marksans Pharma have surged between 5%-13% on the BSE.

Sun Pharmaceutical Industries, Cadila Healthcare, Dr Reddy’s Laboratories, Cipla and Aurobindo Pharma were up in the range of 3%-5%.

At 03:21 PM, the S&P BSE Healthcare index was up 3.6% or 559 points at 16,077 as compared to 1.3% rise in the S&P BSE Sensex.

Lupin has rallied 10% to Rs 1,816, bouncing back 13% from intra-day low after the company reported net profit of Rs 530 crore against an average analysts estimates of Rs 475 crore for the quarter ended December 2015 (Q3FY16).

Net sales grew by 6.8% Rs 3,358 crore against Rs 3,145 crore in the corresponding quarter of previous year. Analysts on an average expected revenues of Rs 3,348 crore for the quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved by nearly 600 basis points sequentially at 28.1% in Q3FY16 against 22.5% in Q2FY16.

Sequentially the quarter has improved significantly and this will get much better going forward. The quarter saw a significant pick up in approvals as well as product launches with us clocking in good growth in the US, India and Japan. We continue our investments in research as well as our manufacturing operations and this will drive long-term growth, said Mr. Nilesh Gupta, Managing Director, Lupin.

Sequent Scientific has soared 13% to Rs 850 on the BSE after the company announced that its wholly owned subsidiary Alivira Animal Health has commenced the production in the Vizag facility post receipt of clearance from the Andhra Pradesh Pollution Control Board. The stock hit an intra-day high of Rs 890 on the BSE.

Dishman Pharmaceuticals & Chemicals surged 8% to Rs 347 after net profit of the company nearly doubled to Rs 46.93 crore in Q3FY16 against Rs 24.03 crore in previous year quarter.