Lupin to Cipla, pharma firms on course to shed 'underperformer' tag in FY19

Easing of pricing pressures, launch of limited competition drugs in the US, weak rupee are key triggers

After underperforming the broader indices for each of the last three fiscal years, the Nifty Pharma — with returns of over 20 per cent — has been one of the best performing indices this fiscal. And the trend is likely to continue.

One of the reasons for the rally has been the 15 per cent depreciation of the rupee compared to the greenback. While Divi’s is the biggest beneficiary (90 per cent of revenue exposure to the dollar), Dr Reddy’s, Aurobindo and Cadila Healthcare, too, will benefit as over half their revenues are denominated in dollars. 

Further, what has helped