Pharma Stocks up
MumbaiAs news of Ranbaxy and Ciplas co marketing arrangement hit the market, the latters scrip shot up to a 52-week high today to Rs 1,256.90 on the Bombay Stock Exchange (BSE) on funds managers' expectation of the company receiving rights for drugs going off patent in the US.

The scrip ended at Rs 1,225.7, after having crossed the earlier high of Rs 1,244.80. The intra-day low today was Rs 1,202.5.

On the National Stock Exchange (NSE) the scrip ended at Rs 1,234.9 after touching an intra-day high of Rs 1,257.

The Ranbaxy stock, which opened at Rs 591.30 on the BSE, ended the day higher at Rs 609.45, after an intra-day high of Rs 618.70.

The rally in these two scrips spilled over to other pharma stocks as well. Cipla, in the last three trading sessions, gained 12.06 per cent to Rs 1,230.40, while Wockhardt in the last eight trading sessions rose 16 per cent to Rs 388.95.

Dr Reddy's have been in the limelight over the last couple of months on the strength of their good first quarter results and positive developments related to the approval for launch of new drugs in the overseas markets. The stock has risen over 35 per cent to Rs 593.15 in the last 48 trading sessions.

In the last one month, the market capitalisation of pharma firms has witnessed an all-round increase.

While Cipla rose 15.35 per cent to Rs 7,378.71 crore from Rs 6,396.70 crore, Dr Reddy's Labs went up 13.90 per cent to Rs 6,911.72 crore from Rs 6,068.45 crore and Ranbaxy Labs rose 12.31 per cent to Rs 6,874.61 crore from Rs 6,121.26 crore.

Analysts said the rise is mostly due to the change in the market focus from IT stocks to defensive stocks.

Further, pharma companies have not only shown resistance to the economic slowdown, but have progressed too.

Exports have led the better performances of some of these companies. Dr Reddy's, for instance, in the quarter ended 30 June 2001, registered a 173 per cent rise in net to Rs 53.5 crore led by exports.

Cipla posted a 14 per cent rise in its first-quarter net to Rs 44.4 crore, Ranbaxy net rose 22 per cent to Rs 49.3 crore in Q2 ended June 2001, while Wockhardt notched up an impressive 71 per cent rise in Q2 ended June 2001 net profit to Rs 22.7 crore.

However, as per market talk, the much-awaited relaxation of the Drug Price Control Order (DPCO), supposed to bring down the number of drugs under price control, is likely to be delayed.
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