Pharma Stocks

Pharma stocks available on a lottery

Indian pharma exports stands at $17 billion at present and grew 9.4 per cent in 2015-16, said a report. The domestic pharma industry exports $12.7 billion worth of pharma goods in the generic category, which is 5.8 per cent of the overall global generic market . The Nifty Pharma index has already corrected about 7 per cent so far in 2016 weighed down largely by concerns over regulatory hurdles, expensive valuations, falling volume and USFDA concerns, which have capped the upside for the sector.

The pharma industry grew 6.4 per cent in March, the slowest growth this financial year . Market experts say there is big potential in the pharma space for those with a long-term view. "I am bullish on pharma... Indian pharma supplies 40 per cent of American generics and 7 per cent value." 

Latest data showed there have been over 400 observations on Indian pharma from the USFDA over the past 12 months. "USFDA is a temporary problem. You must not read into anything in the sense that if the importance of size and importance of Indian pharma is growing, they also need to gear up to the required standards of the US.

"Indian generics have no global alternatives for the long term. I see a sign of maturity scaling up in Indian pharma. Most pharma companies can throw up wonderful opportunities for investors to buy these stocks 30-40 per cent cheaper if you have faith in them. The business opportunity is beyond doubt because the world needs generics." 

Source(Economic Times)