Sun Pharmaceutical Industries, Ranbaxy Laboratories, Cipla, Lupin, Aurobindo Pharma, Divi’s Laboratories, Abbott India, Torrent Pharmaceuticals and Shasun Pharmaceuticals have hits their respective new highs on the Bombay Stock Exchange (BSE) during intra-day deals on Tuesday.
S&P BSE Healthcare index, a gauge of pharmaceutical companies, is the largest gainer among sectoral indices, up 155 points or 1.2% at 13,409 compared to 0.04% or 11 points gain in S&P BSE Sensex at 1055 hours.
Moody's Investors Service says that India's pharmaceutical market will continue to grow in the double digits; a rate which is more favourable than most other markets for the industry.
"Even if India's GDP growth slows or is uneven, the Indian pharmaceutical market would still represent a better growth opportunity than many other geographic markets, because of improving socioeconomic conditions and access to health care, against the backdrop of a rising prevalence of diseases such as diabetes and cardiovascular problems," says Kailash Chhaya, a Moody's Vice President and Senior Analyst.
The US market represents a substantial growth opportunity for Indian drug firms, due to rich pipelines of generic drugs awaiting approval by the US Food and Drug Administration (FDA), Moody's Investors Service said in a report.
However, drug companies in the country could face higher debt levels, as the pharmaceutical sector in India grows, resulting in mergers and acquisitions, says report.
Meanwhile, the BSE Healthcare index, which touched a record high of 13,478 in intra-day deal today, has rallied 34% in past three months from 10,022 on May 26, against 7% rise in benchmark index during the period.
Sun Pharma, Ranbaxy Laboratories, Lupin and Glenmark Pharmaceuticals from the frontline pharma stocks gained more than 40% each in past three months.
Alembic Pharmaceuticals, Ajanta Pharma, Natco Pharma, Indoco Remedies, Marksans Pharma, Suven Life Sciences, Granules India, Shasun Pharma, Dishman Pharma and Sequent Scientific from mid-and-small-cap pharma stocks have rallied between 50%-120% during the period.