Indian Pharma Companies Show Exceptional Performance in the U.S.

Indian pharma companies like Cipla and Ranbaxy out-performed, while Cipla registered a growth of 17 percent in the local market, Ranbaxy showed an impressive double-digit growth in the U.S.  Angel Broking expects strong sales growth of 23 percent and earnings growth of 24 percent year over year from the pharma companies. ICICI Securities predicts that reversal in rupee is going to benefit the Indian pharmaceutical industry with foreign debt due to reversal of forex losses. Barclays equity research share the same views with Angel Broking, and expects the performance of Dr. Reddy’s Labs, Lupin, Sun Pharma and Glenmark to be better than the rest.

A gain of 9.4 percent has been recorded for BSE Healthcare Index during the September quarter, and the ET Pharma Index increased over 9 percent against 3 percent gains made by the sensex, in the quarter of June.  

Depreciation in rupee may have adverse effects on export-oriented sectors, but it leads to favorable outcomes for companies with outstanding foreign debts. The Indian pharma industry is expected to show a descent growth in the next few quarters due to falling rupee serving as a catalyst to increase gains in terms of exports to U.S. and Europe.

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