Pharma stocks edge higher on weak rupee

Seven pharma stocks rose 0.19% to 1.22% at 11:00 IST on BSE as rupee weakened past 65 against the dollar.

Lupin (up 0.42%), GlaxoSmithkline Pharmaceuticals (up 0.37%), Cipla (up 0.78%), Ipca Laboratories (up 0.19%), Strides Arcolab (up 0.28%) and Divi's Laboratories (up 1.22%) edged higher. Wockhardt (down 0.19%) and Glenmark Pharmaceuticals (down 0.77%) edged lower.

Meanwhile, the S&P BSE Sensex was down 53.38 points or 0.2% at 26,986.38.

A weak rupee will boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. In the foreign exchange market, the rupee weakened past 65 against the dollar. The partially convertible rupee was currently hovering at 65.1225, compared with its close of 64.9275 during the previous trading session.

Dr Reddy's Laboratories was up 1.21% at Rs 4,157. The company is set to announce its Q2 September 2015 earnings today, 29 October 2015.

Sun Pharmaceutical Industries (Sun Pharma) was off 0.72% at Rs 894.50. Sun Pharma after market hours yesterday, 28 October 2015, announced the successful completion of the cash tender offer by Thea Acquisition Corp (Thea), an indirect wholly owned subsidiary of Sun Pharma, for all outstanding shares of common stock of InSite Vision Incorporated (InSite). Thea now intends to exercise its option under the merger agreement (the top-up option) to purchase directly from InSite an additional number of shares so as to give it ownership of atleast 90% of the outstanding shares of InSite common stock.

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