Share prices of almost all major Pharmaceutical companies recorded a sharp fall in Bombay stock exchange. The Bombay stock exchange healthcare index declined by over 3 per cent in one day to 2763.68.

Major domestic players like Cipla, Dishman, Divie's, Dr Reddy's Glenmark, JB Chemicals, Neuland, Nicholas Piramal, Orchid, Sun Pharma, Vimta Labs experienced selling pressure. Dr Reddy's share lost Rs 30.45 and touched to Rs 763.95. The Gelnmark, which was moved to its highest level at Rs 563 on account of bonus announcement, declined sharply by Rs 32.90 to Rs 509.50.

One of the reasons mentioned for the drop in pharma share prices is the government's decision to levy the excise duty on MRP of medicines instead of ex-factory price. The overall bearish sentiment also affected the share price movements. The major pharma shares like Ranbaxy declined sharply by Rs 54.95 to Rs 1109.55 on January 11. Cadila Healthcare also saw a heavy loss of Rs 38.80 in one day. The scrip closed at Rs 522.05 from its previous close of Rs 560.85. Matrix, which was recently in lime light, moved down by Rs 58.55 to Rs 2222.60.

A pharma analyst pointed out that the pharma shares were in limelight for several past sessions and everybody was expecting correction. However, he pointed out that the fundamentals of pharma segment are very strong and this is only a temporary correction. In the near future pharma scrips will show opposite movements on strong FIIs and general investors support.

Amongst MNCs, barring Aventis Pharma, all shares moved down significantly. AstraZeneca lost Rs 69.75 in one day and it was closed at Rs 1526 on January 11.Pfizer declined by over Rs 20 to Rs 725.50. Other MNC scrips like Abbott India, Fulford, Merck, Novartis, Solvay Pharma and Wyeth also declined sharply. However, Aventis Pharm has shown interesting upward movements and jumped by Rs 29.65 to Rs 1220.05. GlaxoSmithKline moved down marginally to Rs 704 from Rs 704.20.

The companies like Aurobindo, Ipca, Lupin, Aarti Drugs, FDC, Panacea Biotech, Shasun Chemicals Wockhardt and Torrent Pharma also declined on profit taking.