Pharma stock picks - October 1, 2010
October 3rd, 2010
Glenmark Pharmaceuticals Limited
Religare has picked Glenmark Pharmaceuticals Limited as one of its top midcap pick.
Positives: The company’s development of a portfolio of low-competition niche generics are believed to drive growth for the company in the near to short-term. Restructuring and geographical expansion in Latin America is believed to be the main contributor for grown. US Volumes are likely to increase in view of a line of approvals that are likely to get cleared.
Negatives: Sanofi and Merck deal turning unfavorable. Pricing pressure from the US market
Dr. Reddy’s Laboratories
IIFL recommends Dr. Reddy’s in the Large-cap buys.
The stock is currently at Rs. 1329 and IIFL expects a target of Rs. 1803
Lupin
Goldman Sachs has moved Lupin off its convictions list but has still put a Buy rating on the stock.
Positives: FTF pipeline, stable to positive US sales and Lupin’s move towards leadership position with consistent CROCI returns.
Negatives: Delay in FDA approvals, increased competition and lower sales volumes.
Entry Filed under: Equity Markets, Pharmaceuticals
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