You are here: Home » Markets » News
Business Standard

Pharma shares in demand; Healthcare index hits new high

Sun Pharma, Ranbaxy, Dr Reddy's Lab, Lupin, Glenmark, Wockhardt and Cadila Healtchare gained 1-8% on BSE.

SI Reporter  |  Mumbai 

Shares of frontline pharmaceutical companies are in demand on the bourses with the BSE Healthcare index hitting new high in an otherwise weak market today.

S&P Healthcare index, gauge of pharmaceutical companies, has surged 1% or 130 points compared to nearly 1% or 185 points decline in benchmark S&P BSE Sensex at 1400 hours. The healthcare index hit a record high of 12,070 in intra-day.

Sun Pharmaceutical Industries, Ranbaxy Laboratories, Dr Reddy’s Laboratories, Lupin, Glenmark Pharmaceuticals, Wockhardt, Cadila Healtchare and Cipla gained between 1% and 8% on the BSE.

Sun Pharma (up 3% at Rs 772) and Lupin (up 2.5% at Rs 1,122) hit their respective new highs on BSE.

Ranbaxy has surged 3% to Rs 579, also its fresh 52-week high after the company said it has signed a licensing agreement with Canada’s Cipher Pharmaceuticals Inc to exclusively market, sell and distribute Cipher’s isotretinoin capsules in Brazil.

The agreement extends the current relationship with Cipher, under which Ranbaxy is marketing and distributing Cipher’s isotretinoin product in the US under the brand Absorica.

Glenmark Pharmaceuticals has rallied 6% to Rs 633 on reporting a strong 44% year-on-year jump in consolidated profit at Rs 185 crore on back of strong revenue growth for the quarter ended June 2014. The company had profit of Rs 129 crore in year ago quarter.

For the first quarter ended June 30, 2014, Glenmark’s consolidated revenue was at Rs 1,487 crore as against Rs 1,238 crore in the corresponding quarter recording a growth of 20%. EBITDA or operating profit margins improved 300 basis points to 23% from 20%.

Wockhardt zoomed 8% to Rs 711 on back of over four-fold jump in trading volumes. The stock opened at Rs 666 and touched a high of Rs 720 on BSE. A combined 8.95 million shares changed hands on the counter till 1410 hours on NSE and BSE. In past one week, the stock rallied 21% compared to 1.7% rise in the benchmark index.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, July 25 2014. 14:19 IST