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Pharma stocks witness selling pressure

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Ten pharma stocks fell by 0.07% to 11.22% at 14:00 on after a media report indicated likely new US order to lower drug costs in the US.

IPCA Laboratories (down 11.22%), Lupin (down 4.23%), Divi's Laboratories (down 2.25%), Cadila Healthcare (down 2.14%), Cipla (down 1.78%), Sun Pharmaceutical Industries (down 1.75%), Dr Reddy's Laboratories (down 1.23%), Strides Shasun (down 0.97%), Piramal Enterprises (down 0.56%) and Wockhardt (down 0.07%), edged lower. Glenmark Pharmaceuticals (up 0.31%), Alkem Laboratories (up 0.41%), GlaxoSmithKline Pharmaceuticals (up 0.75%) and (up 1.76%), edged higher.

The S&P Sensex was up 34.56 points, or 0.11% at 31,110.29.

According to media reports, US President Donald Trump's administration is preparing an executive order aimed at lowering US drug costs. Officials in the administration will meet later today, 16 June 2017.

One policy being discussed for inclusion in the order is expressing support for value-based agreements, a drug industry-backed proposal in which pharmaceutical companies and health insurers develop arrangements to pay for products depending on how well they work, reports added.

A domestic brokerage reportedly said that this move could further create pricing pressure and hurt Indian pharma companies that are already facing regulatory issues and currency woes. The broker continued to remain cautious on the sector, reports added.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 16 2017. 14:06 IST