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Sun Pharma, Lupin, Dr Reddy's hit 52-week lows; Biocon slips 8% intra-day

Nifty Pharma index slipped 3.3% in past three trading days against 1% fall in Nifty 50

Indian destocking hits GSK consumer health care business — Apart from trade destocking in India, another key reason for a drop reported in consumer health care CER growth in the quarter was divestment of its beverage business in Nigeria

SI Reporter Mumbai

Last Updated : Aug 04 2017 | 11:14 AM IST

Shares of pharmaceutical companies were trading under pressure with the frontline stocks like Sun Pharmaceutical Industries, Lupin and Dr Reddy’s Laboratories hitting their respective 52-week lows in early morning deals.

At 10:23 am; Nifty Pharma index, the largest loser among sectoral indices, was down 1.5% as compared to a marginal 0.02% decline in the Nifty 50 index. In past three trading sessions, the pharma index slipped 3.3% as against 1% fall in the benchmark index.

Among the individual stocks, Biocon has slipped 8% to Rs 347 after the US Food and Drug Administration (FDA) issued Form 483 with 10 observations after inspecting the company’s Bengaluru plant. CLICK HERE FOR REPORT.

Biocon on Monday, On July 31, 2017, said that this USFDA visit was a part of the regular periodic audit for small molecule injectable.

The company has responded to the regulator with a corrective and preventive action plan and is on track to implement them in timely manner, the company spokesperson said in response to media queries regarding the USFDA visit to Biocon in the month of May/June 2017.

Lupin and Dr Reddy’s Laboratories hits their respective fresh 52-week lows after they reported a weak set of numbers in April-June (Q1FY17) quarter. Sun Pharmaceutical Industries, too, hit 52-week low of Rs 493 on NSE in intra-day trade.

Lupin has lowered its FY18 Ebitda (Earnings before interest, taxation, depreciation and amortization) margin guidance by 500bps owing to higher-than-expected erosion in Glumetza and price pressures in the US base business.

Analysts at IIFL Institutional Equities expect Lupin’s US revenue to decline 20% cc in FY18 due to Glumetza/Fortamet sales erosion. Most of the key near-term launches are expected to begin only in 2HFY18.

COMPANY	LATEST	PREV CLOSE	LOSS(%)
BIOCON	352.90	375.30	-6.0
CADILA HEALTH.	526.40	546.10	-3.6
SUN PHARMA.INDS.	502.20	516.20	-2.7
DR REDDY'S LABS	2270.40	2331.85	-2.6
NATCO PHARMA	943.00	965.20	-2.3
MARKSANS PHARMA	40.55	41.45	-2.2
AUROBINDO PHARMA	725.55	741.35	-2.1
LUPIN	976.45	994.90	-1.9
TORRENT PHARMA.	1229.45	1252.05	-1.8
GLENMARK PHARMA.	690.70	702.25	-1.6