MNC pharma in focus; Merck, Novartis India, GSK Pharma hit 52-week highs

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Shares of multinational (MNC) pharmaceutical companies have rallied by up to 13%, hitting their respective 52-week highs on the BSE in intra-day trade on Wednesday after reporting a strong financial result for the quarter ended June 2018.

Novartis India (up 13% at Rs 734), Merck (up 5% at Rs 3,030), GlaxoSmithKline (GSK) Pharmaceuticals (up 2% at Rs 3,339) were trading at their respective 52-week highs, while Pfizer (up 5% at Rs 2,794) and Sanfoi India (up 1% at Rs 6,215) were quoting close to their 52-week highs on the BSE. On comparison, the S&P BSE Sensex was up 0.47% at 37,841 points at 12:00 PM.

The aggregate net profit of five MNC pharma companies increased 83% at Rs 3,383 million in June 2018 quarter. These companies had posted a combined net profit of Rs 1,845 million during the same quarter last year.

Merck hit an all-time high of Rs 3,030, up 5%, extending its Tuesday’s 18% rally, after company posted 140% YoY jump in its June quarter net profit at Rs 483 million on the back of robust operating income.  The company had a net profit of Rs 201 million in the year ago period. Revenue rose 33% YoY at Rs 2,203 million against Rs 1,653 million.

Novartis India has surged 13% to Rs 734 on the BSE in intra-day trade on 10-fold jump in trading volumes. Around 112,000 equity shares changed hands so far against an average 14,000 shares were traded daily in past two weeks on the BSE. The company posted 42% year on year (YoY) growth in net profit at Rs 100 million in June quarter.

  Net sales Rs million Net profit Rs million
Company Jun-17 Jun-18 % chg Jun-17 Jun-18 % chg
Glaxosmi. Pharma 5829 7357 26 264 886 235
Merck 1653 2203 33 201 483 140
Novartis India 1148 1381 20 70 100 42
Pfizer 4209 5123 22 572 918 61
Sanofi India 5558 6395 15 737 996 35
             
Aggregate 18397 22459 22 1845 3383 83
             
Source: CapitalinePlus