The Indian pharmaceutical segment is unlikely to be impacted adversely due to Britain's decision to move out of the European Union (EU) as the entire EU market accounts for around 12 per cent of India's total exports of pharmaceuticals. According to a CRISIL report, the share of the UK is only 3.5 per cent. However, few companies like Aurobindo and Wockhardt, with higher exposure to Europe, will see some impact.

The Indian market closed lower significantly on Friday June 24 after the UK voted to leave the European Union. While the Sensex ended down 604 points at 26397, Nifty closed 181 points down at 8089. Selling was seen across sectors; major losers were capital goods, metal, realty and financial stocks. Relatively pharma shares were stable with small losses.

The BSE Healthcare index moved up sharply today. As against Friday close of 14925.72 points, the Healthcare index opened at 14986.39 and went up to 15226.47 points, registering growth of over 300 points. Thus, the Brexit decision has not adversely impacted overall pharma segment.

The pharmaceutical scrips like Sun Pharmaceutical, Dr Reddy's Laboratories, Lupin, Cipla, Cadila Healthcare, Glenmark Pharmaceutical, Wockhardt, Torrent Pharma and Biocon opened higher today as compared to Friday close. Sun Pharma opened at Rs.758 and closed at Rs.773.90 on BSE. Dr Reddy's Laboratories moved up by Rs.95.70 and closed at Rs.3246, Lupin by Rs.15.50 to Rs.1478.40, Cipla by Rs.12.50 to Rs 489, Wockhardt by 9.90 to Rs.898.30, Glenmark by Rs.15.80 to Rs.779.25 and Biocon by Rs.46.95 to Rs.757.10 on BSE.

According to Moody's Investors Service report, the UK's decision to leave the European Union will lead to a prolonged period of uncertainty that will weigh on the country's economic and financial performance and will be credit negative for the UK sovereign and other rated entities.

The immediate financial market reaction has been pronounced, with sterling depreciating sharply and global equity markets falling. Heightened uncertainty during negotiations over new arrangements between the UK and the EU will likely dent investment inflows and consumer and business confidence in the UK, weighing on its growth prospects.