As generic pharma players lag, investors log into Crams companies

Acceleration in outsourcing trend is expected to help Divi's Labs, Jubilant Life and Syngene post strong revenue growth

Larger generic players are struggling to improve their revenue growth amid multiple headwinds, but one segment that has bucked the trend within the pharma space is contract research and manufacturing services (Crams). 
 

While sustaining base business revenues has become tough for generic players given lumpy revenues and high dependence on the US market which has structural issues, revenue visibility and pipeline of Crams players remain robust. An analyst at a domestic brokerage says: “The Street is betting on Crams players given better prospects, stable cash flows and good margins.” This is reflected in their stock prices with the S&P