Indian pharma companies should increase base of sales in next few years: Nirmal Bang

New Delhi, June 21, 2017: Formulations plant of Dr Reddy’s Laboratories at Srikakulam gets inspected and gets 1 observation from United States Foods and Drug Authority (US-FDA). The plant was inspected with zero observations last time.

In an interview to CNBC-TV18, Vishal Manchanda, Pharma Analyst at Nirmal Bang spoke about the same.

He expects the company to resolve this observation in some time like they have been able to resolve the observations at Miryalaguda in the short time.

Entire sector is in a stage of transition and they need to scale up from here, he said.

“2018-2019 is when we will see the efforts from research and development (R&D) fructifying and delivering complex dosage forms in terms of approvals. Once these things are in place, all companies are set for a new growth trajectory. From a billion dollar to a USD 2 billion base would be the next rally for Indian pharma companies and that should be accomplished in the next four-five years,” said Manchanda.

Speaking about Aurobindo Pharma, he said, the company has surprised by delivering complex approvals. He expects to see such surprises from other companies.

A large part of the approvals expected are in to the price for Cadila Healthcare, he added.

He also expects Natco Pharma to stabilise once Copaxone approval comes through. He sees upside in the stock from current levels.

Dr Reddy’s Laboratories is Manchanda’s top pick in the pharma sector followed by Cipla and Aurobindo Pharma.