Pharma shares, which were in limelight during the first three months of 2015, started declining sharply from April 13, 2015 and passed through volatile movements. A new S&P BSE Healthcare index (BSEHC) of 56 companies declined to 15953.12 points yesterday from previous day's closing. Healthcare touched to its highest level at 18389.36 points on April 13. All major pharma scrips saw a significant selling pressure and lost heavily. However, the S&P BSE Sensex of 30 scrips declined only by 260.95 points to 27,176.99 points on April 27.
From April 16, 2015, Asia Index Pvt Ltd (AIPL), a joint venture between S&P Dow Jones Indices and BSE, has launched the S&P BSE AllCap index, and its suite of 15 indices, including S&P BSE Healthcare index. There were 56 constituents included in the healthcare index. Besides, this, AIPL also launched three strategy indices for investors dealing in sophisticated investment products.
The major scrips like Wockhardt, Dr Reddy's Laboratories, Sun Pharmaceuticals, Pfizer, Lupin, SPARC, Aurobindo Pharma, Torrent Pharma, Natco Pharma, Cadila Healthcare, Glaxo Pharmaceuticals, Ajanta Pharma, Stride Arcolabs, etc. declined yesterday significantly.
The financial results will start from May 2015 and overall performance will be under pressure due to quality problem in the US, slow product approval rates, lower than expected returns from R&D investments, competition and new Drug Price Controlled Order. Overall exports may improve with depreciation of rupee against US Dollar, Euro and Pound, but the top line and bottom line may be under pressure on account of DPCO.
Wockhardt, a Rs.4,800 crore Mumbai based pharma major, share experienced volatile movements up to yesterday and it touched to its yearly peak level at Rs.2000 on April 8. However, the scrip declined sharply yesterday and it lost Rs.98.05 to Rs.1330.05 on BSE from its previous day's closing. Similarly Sun Pharmaceutical scrip declined sharply by Rs.21.05 to Rs.926.75. Sun scrip touched to its highest level at Rs.1200.70 on April 7, after merger of Ranabxy Laboratories.
Dr Reddy's Laboratories, a second largest pharma company in India, lost Rs.122.10 on BSE and scrip declined to Rs.3380.95. Lupin also lost Rs.35.65 and moved down to Rs.1722.80 yesterday as against its recent high level of Rs.2,112 on April 8. Divi's Laboratories lost significantly and moved down by Rs.38.80 to Rs.1734.40 as against its peak level of Rs.1,968.
Major MNCs like Sanofi, Pfizer, and GlaxoSmithKline Pharma received major setback on BSE yesterday.