Buzz in pharma stocks fades away; Aarti Drugs, Aurobindo Pharma & Granules tumble
Investors invested in pharmaceutical and healthcare stocks were in euphoria during the past few months. However, it seems that the buzzing momentum of pharma stocks has slowed down.
In the current subdued market situation, investors seem to be following a stock-specific approach as pharma companies begin to come under the scanner of USFDA for the compliance of quality standards.
On Thursday, the shares of Aurobindo Pharma plunged by around 5 per cent after the company announced that its wholly-owned step-down subsidiary, AuroLife Pharma LLC received a warning letter from USFDA for its oral solid manufacturing facility situated located in Dayton, New Jersey, For the same facility, the company had previously received a letter from USFDA dated June 4, 2020, issuing an OAI status.
Granules received marketing approval from USFDA for Potassium Chloride extended-release tablets USP, 10 mEq (750 mg) and 20 mEq (1500 mg). Granules’ tablets are used for the treatment of patients with Hypokalemia, which is bioequivalent to the reference listed drug (RLD), K-Dur.
Meanwhile, Dr Reddy’s Laboratories reported about a cyber-attack post, after which, all its data centres have undergone isolation to take preventive action.
Following is a list of stocks that highlights the spreading of calmness in the pharmaceutical sector. Stocks that had reported huge gains since March lows and also in the past one month have declined in the past one week.
||Adjusted PE (x)
||Returns (per cent)
||Since March 23
|Morepen Laboratories Ltd.
|Aarti Drugs Ltd.
|Advanced Enzyme Technologies Ltd.
|Solara Active Pharma Science Ltd.
|Marksans Pharma Ltd.
|Strides Pharma Science Ltd.
|Cadila Healthcare Ltd.
|Aurobindo Pharma Ltd.
|Hester Biosciences Ltd.
|Granules India Ltd.
|Glenmark Pharmaceuticals Ltd.