Pharma Stocks may continue rally in further days
Pharma Stocks: The Pharma index hits fresh high price levels in the Friday session. Lupin, Cipla, and Dr. Reddy’s laboratories witnessed a rally on the path to launch a new Revlimid. However, the pharma sector will remain on focus in the stock market due to earnings visibility.
As per the analysis, the pharma stocks have the potential to earn double digits in the next five years. Only the healthcare index has the chance in the market due to the spread of the COVID-19 pandemic.
On Friday, the BSE healthcare index raised 690.10 points at a 20,404.76 level. Besides, the index hit a 52-week high level of 20,689.07. Moreover, the index has been trading in the bullish trend as of the technical view.
Besides, Natco Pharma was the top gainer in Friday’s trade. The share price of Natco Pharma surged around 14 percent on the positive news. Furthermore, Dr. Reddy’s lab shares gained 10 percent and closed at Rs 2,326.70.
As of the source, both Natco and Dr. Reddy’s are in news related to the patent litigation with Celgene Crop. on the launch of Revlimid.
Moreover, the shares of Lupin and Cipla raised 4.6% and 7 percent, respectively. These stocks were raised in Friday’s session after the announcement of a voluntary recall by Perrigo. However, Lupin and Cipla are the competitors for Perrigo. On account of, Lupin has a $850 million US albuterol sulfate market. The Cipla has a $900 million albuterol sulfate market.
However, these to stocks have a chance to boost earnings per share between 4-6 percent.
BSE Healthcare Stocks
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Moreover, the Aarti drugs ltd. is in the lead position with a 449.98 % increase from March 24. Besides, Neuland labs, Marksands, IOL chemicals gained 154 to 435 percent.