Pharma scrips gain momentum, hit highs

Pharma stocks are back under the arc lights on the bourses with the Bombay Stock Exchange (BSE) Healthcare index closing at an all time high on Friday. A string of positive developments in the sector has propelled pharma stocks to record valuations.

As the introduction of the product patent regime from January 1, 2005, nears, investors are chasing multinational (MNC) pharma scrips. Most of the pharma scrips on Friday gained between two per cent and 16 per cent on the BSE, despite the benchmark indices being down.

The BSE Healthcare index gained 1.12 per cent on Friday to close at 2,960.68, even as the benchmark Sensex was down by 73.90 points (1.15 per cent) to close at 6,346.48.

As many as 14 pharma stocks touched all-time highs on the BSE on Friday. The list includes AstraZeneca Pharma, Nicholas Piramal, Ranbaxy Labs, Ipca Lab, Novartis India, Cadila Healthcare, Sun Pharma, Glenmark Pharma, Wockhardt, Elder Pharma, Panacea Biotec, Syncom Formulations and Bal Pharma.

A few stock such as Dishman Pharma, FDC, Ind Swift, Ind Swift Lab, Alembic, Aarti Drugs, Albert David and Themis Medicare hovered around their life-time highs.

During the week, the BSE Healthcare index has increased by six per cent compared with just two per cent rise in the Sensex. The total market capitalisation of the pharma sector has increased by Rs 6,614 crore in the course of the week, from Rs 1,04,559 crore on December 10, 2004, to Rs 1,11,173 crore on December 16.

The AstraZeneca Pharma stock shot up 9.42 per cent (Rs 131.40) to Rs 1,526.55 against Thursday's close of Rs 1,395.15 on the BSE.

Matrix Lab's scrip has gone up by 6.1 per cent (Rs 123.75), from Rs 2,018.80 to Rs 2,142.55. Aventis Pharma has gained by Rs 87.25 to Rs 1,244.15 (Rs 1,156.90), Nicholas Piramal by Rs 55.35 to Rs 1,384.95 (Rs 1,329.60), Fulford India by Rs 41.25 to Rs 567.29 (Rs 526.04), Divi's Laboratories by Rs 39.50 to Rs 1,332.50 (Rs 1,293) and Cadila Healthcare by Rs 37.50 to Rs 572.79 (Rs 535.29).

In the last one week, the market price of Novartis has increased by 21 per cent from Rs 56.80 on December 10 to close at Rs 68.95 on Friday. Albert David stock price appreciated by 18 per cent to Rs 143.44 (Rs 121.30), Krebs Biochemicals by 17 per cent to Rs 238.40 (Rs 204.55), Glenmark Pharma by 15 per cent to Rs 391.35 (Rs 339.65), Bal Pharma by 15 per cent to Rs 77.84 (Rs 67.80), Panacea Biotec by 14 per cent to Rs 153.25 (Rs 134.40) and Dishman Pharma by 11 per cent to Rs 586.25 (Rs 529.10).