The S&P BSE Healthcare index of 70 pharma and healthcare companies was under pressure during the first quarter ended March 2017 and improved only by 4 per cent as against the BSE Sensex index of 30 major companies improved by 11.2 per cent. S&P BSE Healthcare index closed at 15312 points as at the end of March 30, 2017 as compared to 14,728 points as at the end of December 2016 basically due to US FDA actions against pharma majors, competition and price control efforts. BSE Sensex moved up to 29,620 points from 26,626 points in the sames period.
Though few pharma scrips like Cadila Healthcare, Dishman Pharma, Jubilant Lifesciences, Natco Pharma, Alkem Laboratories, Granules India, Gufic Biosciences, Kopran, Lincoin Pharma and Neuland Laboratories surged over 20 per cent during first quarter of 2017, few major scrips such as Divi's Laboratories, Dr Reddy's Laboratories, IOL Chemicals, Lal Path Laboratories and Poly Medicure declined by over 10 per cent. The share price of Dr Reddy's Labs (DRL) and Divi's Labs declined significantly due to US FDA warning letters in respect of quality problems. Further, Ajanta Pharma, Glenmark Lupin, Aarti Drugs, Abbott India, FDC, Indoco Remedies, J B Chemicals, Morepen Laboratories, Orchid Pharma, RPG Life, Shilpa Medicare, SMS Pharma, Suven Life Science, Syngene, etc, were under pressure and declined during the first quarter ended March 2017.
DRL has received fresh 13 observations from US FDA on March 8, 2017 in respect of its formulation facility at Duvvada, Vishakhaptnam after completion of audit. DRL scrip declined by 13.7 per cent to Rs. 2,632.50 on March 31, 2017 from its last day of December 2016 closing of Rs. 3,052. The scrip touched to its yearly lowest level of Rs. 2,560 on March 22, 2017.
Similarly, Divi's Laboratories declined sharply by over 20 per cent to Rs. 624.15 on March 2017 from Rs. 783.10 on December 30, 2016. The company received the Import Alert by US FDA for the products manufactured at the company's Unit-II at Visakhapatnam. The US FDA has exempted the few products such as levetiracetam, gabapentin, lamotrigine, capecitabine, naproxen sodium, raltegravir potassium, atovaquone, chloropurine, BOC core succinate 10. 2,4-wing active ester from the Import Alert. This impacted scrip price movements. Several other scrip like Lupin, Wockhardt, Ipca Laboratories, etc also suffered due to US FDA action.
Dishman Pharma, a Global Contract Research and Manufacturing Services, scrip is moving ahead every day as it is one of the suppliers of the API for “Zejula” capsules to Tesaro Inc, which got approved by the US FDA. The company's thirteen molecules are in late phase III development across various customers. With this news at the end of March 2017, the scrip touched to Rs. 289.95 on BSE.
Natco Pharma scrip went up by 45.9 per cent during the first quarter ended March 2017 to Rs. 847 as the company announced better results and declared second interim dividend of Rs. 6 each to shareholders. The company is marketing its products in more than 40 countries. It is planning to file over 10 ANDAs in the US during next two years. It has strong position in domestic oncology and gastro hepatology segments.
Share price as on 31/3/2017 & 30/12/2016