Re-rating likely of pharma stocks

With return of domestic growth and higher FDA approvals; easing of US regulatory concerns a big positive

The BSE Healthcare index has been one of the biggest gainers over the past few days, on easing of regulatory concerns, improving visibility over product launches and a return of growth in the domestic market.

Ranjit Kapadia of Centrum Broking believes there are encouraging signs which could lead to a re-rating of pharmaceutical stocks, on the back of re-stocking in India and some recovery in the American market. 

Earlier, most analysts had thought there would be no revenue growth in the US market for large generic players for at least a year. The expected recovery there, led by niche product