The BSE Healthcare (BSEHC) index of 25 major pharmaceutical companies improved by 21.7 per cent during the year 2006 on account of strong support from investors and FIIs. The BSEHC closed at 3792.05 on the last trading day of the year 2006 as compared to 3114.85 on December 30, 2005. The index touched to its 52 weeks peak level at 4154 on May 5, 2006 and at its lowest level at 2807 on June 14, 2006.

The strong financial performance during 2005-06 as well as in the first half of current year, higher exports, higher approvals of facilities and products by US FDA, mergers and acquisitions, focus on R&D and investments in expansion have given necessary support for the upward movements in BSEHC during 2006. Further, the pharmaceutical companies rewarded its investors handsomely and win their confidence.

The analyst expressed positive signal and said that the pharma segment will able to move ahead strongly in the current year also despite few odds like competition, government policy and slower outcome of R&D efforts. Though the competition is likely to increase due to launch of new products by multinational in the domestic market, growth in CRAM activity will increase and the Indian companies will able to overcome the problem.