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Lupin, Biocon, Aurobindo, Torrent Pharma hit new high

Sun Pharma, Strides Arcolab, Wockhdart, Ranbaxy and Dr Reddy's Lab are trading higher by up to 4% on the BSE.

SI Reporter Mumbai
Shares of select pharmaceutical companies are in focus and trading at their respective lifetime high on the Bombay Stock Exchange (BSE).

Lupin, Biocon, Aurobindo Pharma, Torrent Pharmaceutical, Abbott India and Indoco Remedies, up 1-4%, is trading at their new highs. Sun Pharmaceutical Industries, Strides Arcolab, Wockhdart, Ranbaxy Laboratories, Cipla and Dr Reddy’s Laboratories, too, have rallied up to 4% on the BSE.

At 1420 hours, the S&P BSE Healthcare index, the gauge for pharmaceutical companies, is up 0.84% or 84 points at 10,951 against 0.24% or 60 points decline in benchmark S&P BSE Sensex. The BSE Healthcare index touched a record high of 11,013 on June 18 in intra-day trade.

Meanwhile, the BSE Healthcare index has consistently outperformed the overall Sensex over the last five years, due to increase in US contribution to overall sales and a much better growth posted by companies in the domestic market, analysts say.

The US markets will continue to be the mainstay for Indian companies going forward, with consistent ANDA (Abbreviated New Drug Application) launches, which should keep growth for the region elevated, points out an Antique Stock Broking report.

"The domestic market should return to its historical growth of 12-15% from FY15 onwards as the companies have taken an inflation-adjusted price increase of 6.3% on its NLEM (National list of essential medicines) portfolio in Apr-14.Trade-related issues have been resolved between distributors and pharma companies. The latter has decided to give in to the distributors' demand for higher margins," the report says.
 

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First Published: Jun 25 2014 | 2:24 PM IST

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