 "Competition clouds Cadila Healthcare's FY19 profit")
The Cadila Healthcare stock shed nearly seven per cent in two trading sessions as higher competition for a key drug led brokerages to lower the company’s earnings estimates and downgrade the stock.
The drug, Lialda, is used in treating ulcerative colitis and 30-40 per cent of Cadila Healthcare’s estimated profits in 2017-18 are expected to be derived from it.
The company is also facing scrutiny by the Central Drugs Standard Control Organisation for launching a combination drug to treat hypertension without mandatory approval. This has affected sentiment, but investors will look more to the US market and the company’s medium-term outlook.
