Pharma sector likely to bounce back in 2019 after three years of slump

Stability in pricing for the second consecutive quarter may bring back buoyancy

After three years of under-performance, the pharma market could bounce back in 2019 on stable pricing, better domestic growth and reasonable valuations. 

The BSE Healthcare index, which lost 6 per cent in 2018, had registered positive returns for investors back in calendar year 2015 with returns of 15 per cent. 

The muted returns last year was driven by lower net profit due to limited big-ticket launches in the US coupled with price erosion in the base business of majority of generic drug majors. Though the rupee depreciation did help offset some of the weakness, imports of drug intermediates and pricing pressures dented