Limited near term gains for Syngene International stock in pharma space

Sharp re-rating has turned the stock into the most expensive in the pharma space

The Syngene International stock has been among the bigger outperformers in the pharma space, doubling in value over the past year. The gains came on the back of expectations that a rise in research and development programmes of innovators and the expansion of its contract manufacturing business will boost its medium-term prospects. Development of an antibody test kit for Covid-19 and tie-up for broad-spectrum antiviral Covid-19 medication Remdesvir added to the gains.

Higher valuation multiple for companies in the contract research and manufacturing services space led to a sharp price-to-earnings (P/E) ratio rerating and turned the Syngene stock into the