Nifty Pharma index extends fall; Lupin hits 52-week low

Govt proposes to bring fixed-dose combinations under price control
Shares of pharmaceutical companies continued to trade under pressure with Nifty Pharma index down more than 1% for the third straight trading sessions after firms reported a disappointing set of numbers for the quarter ended June 2017 (Q1FY18).

At 2:57 pm; Nifty Pharma index, the largest loser among sectoral indices, was down 2% as compared to 0.43% rise in the Nifty 50 index. In past three trading sessions, the pharma index slipped 5.6% against 0.36% rise in the benchmark index.

Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals and Lupin were down up to 3% on the National Stock Exchange (NSE).

Lupin hit a 52-week low of Rs 1,030 in intra-day trade after the company said the US Food and Drug administration (USFDA) completed the prior approval inspection (PAI) of its Aurangabad manufacturing plant with one 483 observation.

"The observation was procedural in nature and corrected during the inspection itself," Lupin said in a statement.

Dr Reddy’s Laboratories was down 3% to Rs 2,387, extending 9% decline in past two trading sessions, after the  company reported disappointing set of numbers in Q1FY18.

The consolidated net profit for the pharmaceutical company more- than-halved to Rs 59 crore in Q1FY18 against Rs 126 crore in the same quarter year ago. Revenue during the quarter under review grew 3% to Rs 3,316 crore from Rs 3,235 crore in year ago quarter.

Analysts on an average had expected profit of Rs 307 crore on revenues of Rs 3,399 crore for the quarter.

“Our first-quarter results have been below expectations. While headwinds in the form of price erosion due to US customer consolidation continue a lower contribution from new product launches in the US and the GST implementation in India also impacted our performance,” Dr Reddy's Co-Chairman and Chief Executive Officer GV Prasad said while announcing Q1 results.

Company 26/07/2017 28/07/2017 29/07/2017 % chg* %chg#
Cipla 575.45 566.10 559.05 -1.2 -2.8
Glaxosmi. Pharma 2491.85 2443.15 2399.75 -1.8 -3.7
Dr Reddy's Labs 2707.35 2464.95 2390.00 -3.0 -11.7
Lupin 1123.60 1063.90 1034.35 -2.8 -7.9
Sun Pharma.Inds. 579.50 550.80 532.00 -3.4 -8.2
Aurobindo Pharma 747.70 723.90 718.70 -0.7 -3.9
Glenmark Pharma. 707.70 717.45 697.10 -2.8 -1.5
Cadila Health. 548.75 545.85 543.90 -0.4 -0.9
Divi's Lab. 678.80 674.30 670.40 -0.6 -1.2
Nifty Pharma 10036.8 9672.6 9480.00 -2.0 -5.5
Nifty 50 10020.65 10014.5 10074.65 0.6 0.5

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