Pharma stocks extend gains, Divis & Dr Reddy's get reprieve from US FDA
Pharma stocks extended their gain this week on the back of sustained investor interest in the sector owing to attractive valuations.
Viswanath Pilla
Moneycontrol News
Pharma stocks extended their gain this week on the back of sustained investor interest in the sector owing to attractive valuations.
How did the pharma index perform?
The BSE Healthcare rose 0.52 percent in the past week, while the benchmark Sensex declined 1.36 percent.
Dr Reddy's and Divis Laboratories were the biggest gainers, rising 11.41 percent and 10.87 percent, respectively.
The other stocks that gained include Cipla (3.88 percent), Torrent Pharma (3.5 percent) and Biocon (1.55 percent), while Aurobindo Pharma (-4.12 percent), Sun Pharma (-2.04 percent), Lupin (-0.12 percent) and Cadila Healthcare (-0.16 percent).
Here's what kept the sector buzzing:
Divi's Laboratories said it has received a Form 483 citing six observations from US FDA which are procedural, but all previous observations have been confirmed as completed and resolved. The US FDA is re-inspecting the plant which was under warning letter.
Dr Reddy’s shares zoomed as the company said it has received an establishment inspection report (EIR) from the US Food and Drug Administration, for Formulation Srikakulam Plant (SEZ) unit II, Andhra Pradesh.
India’s drug price regulator -- the National Pharmaceuticals Pricing Authority (NPPA) -- has allowed Abbott Healthcare to withdraw its Absorb and Absorb GT1 stents from the Indian market, citing "safety concerns" raised by US FDA, EU, TGA-Government of Australia and also in India.
