China's recovery from coronavirus outbreak, drug demand lift pharma funds

Easing of supply chain issues, hydroxychloroquine opportunity boost sentiments

Pharma funds are seeing a sharp uptick in returns, as China’s recovery from the Covid-19 pandemic has eased concerns on supply chain issues.

In addition, fund managers are also expecting pharma companies’ top lines to gain on the back of high domestic and global demand for hydroxychloroquine (HCQ). 

According to the data from Value Research, one-week returns of pharma sector funds stood at 6.3 per cent. Among equity categories, it was the only one to have given positive returns.

Fund managers say pharma funds face near-term challenges, but