Indian Pharma Stocks Fall Amid US Pricing Pressure and Earnings Drag
1 report, 1 independent
Updated Oct 14
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What happened
The Nifty Pharma index fell 1.6% on October 14, with Divi's Labs and Sun Pharma leading the losses. Shares of most pharmaceutical companies had risen sharply since the conflict in West Asia began, due to the inelastic demand for pharma products. Large-cap companies are expected to report weak earnings growth in the September quarter.
From moneycontrol.com
Why it matters
Profit margins in the September quarter are being squeezed by persistent US pricing pressure and falling sales of high-margin generic Revlimid. This pressure is compounded by accelerated spending on R&D and new therapy launches. Despite this, the index is expected to see 7% year-over-year growth in Q2FY27 for companies under coverage.
From moneycontrol.com
Who's involved
- West AsiaGeopolitical conflict in the region