BSE Healthcare (BSEHC) index of 70 leading healthcare companies declined sharply during the first nine months of 2017 due to issues of quality, price reductions, stronger rupee, poor profitability and competition. The BSEHC index declined by 8.9 per cent to 13,487.76 points on September 29, 2017 as compared to 14811.35 points as at the beginning of 2017. However, the benchmark BSE Sensex of leading 30 companies went up smartly by 17.6 per cent to 31,283.72 points during the first nine months of 2017 to 26,595.45 points. Thus, the BSEHC remained under-performer during this period and touched to its yearly low level at 12,513.13 points on August 11, 2017.

The major scrips like Dr Reddy's Laboratories, Lupin, Ajanta Pharma, Glenmark Pharmaceuticals, Sun Pharma declined during first nine months of 2017. Similarly, Alembic Pharma, Aarti Drugs, J B Chemicals, Strides Shasun and Syngene scrip declined by over 10 per cent. Few other major scrips like Abbott India, AstraZeneca, GlaxoSmithKline, Ipca Laboratories, Jubilant Lifescienes, Novartis India, Pfizer, Sanofi India, Torrent Pharma, Unichem Laboratories and Wockhardt went down. The MNCs performance was also not upto the mark.

Dr Reddy's Laboratories, Lupin, Ajanta Pharma and Divi's Laboratories, Wockhardt, suffered setback mainly due to US FDA warning letters which impacted their financial performance during 2016-17 and the first quarter ended June 2017.

Despite several odds, FDC, Cadila Healthcare, Natco Pharma, Piramal Enterprises (PEL), Vivimed Laboratories, Sun Pharma Advance Research Co, Alkem Laboratories and Claris Life Sciences moved up significantly. FDC scrip improved by 66.2 per cent to Rs.367.35 from Rs.221 as at the end of December 2016. PEL went up by 61.9 per cent to Rs.2,625.10 from Rs.1,621.05. Vivimed Laboratories moved up by 45.3 per cent to Rs.130.35 from Rs.89.65 on December 29, 2016. Biocon has rewarded its shareholder by allotting bonus shares in the ratio of 1:1 and closed at Rs.332.95 as at the end of September 2017.

The first quarter ended June 2017 for major pharma companies was disappointing one and net profit of several companies declined sharply. For instance, Dr Reddy's net profit declined by 56.6 per cent in first quarter and that of Lupin declined by 59 per cent. Cadila Healthcare's net nosedived by 68 per cent. Wockhardt incurred a net loss of Rs.410 crore and Indoco Remedies net loss reached at Rs.22 crore. Sun Pharma received major setback and its net loss reached at Rs.323 crore. However, the net profit of few companies like Strides Shasun, Laurus Labs, Cipla, Natco Pharma, PEL and Glenmark improved significantly.

Indian pharmaceutical companies have successfully gained higher approval for ANDAs from US FDA during last couple of years. For the first half ended June 2017, Indian pharma companies received final approval for 138 ANDAs as against approval for 201 ANDAs during the full year ended December 2016. The US FDA approved total 387 ANDAs during first half as compared to 598 ANDAs in the full year 2016.

Similarly, Indian companies got 32 tentative ANDA approvals from US FDA during the first half ended June 2017 as compared to 70 ANDA in the full year ended December 2016. The US FDA approved total 85 tentative approvals during first half of 2017 as compared to 156 in the full year ended December 2016.



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