The Covid epidemic has postponed a lot of inspection of plants and that is favorable for the sector as a whole. A lot of pharma companies now have done a lot of introspection After the consolidation that has taken place in the pharma space, are there any stocks that are good long-term buys?
Investors need to be overweight on pharma as there is a structural story developing there. Overall, the competitive intensity has reduced globally and in the largest US generic market, and Indian pharma companies have gained a lot of expertise in managing the regulatory environment. This particular pandemic has postponed a lot of inspection of plants and that ... In terms of specific stocks, we are very positive on Aurobindo Pharma and we saw the numbers coming through. They were exceptionally good and the kind of roadmap which they have made out in terms of new molecules and the entire strategy for the specialty is quite interesting. It is very positive over there and we are also keeping our eye on Gland Pharma.
At a time when the entire pharmaceutical industry was undergoing a lot of stress and stagnation and declining profits and revenues, Gland Pharma was one company that maintained its track record and maintained its growth rates. So obviously there is something very strong and special and USP about this company which we will come to know as the quarters go by. We are looking at Gland Pharma quite seriously on listing to see at what price it settles and at what valuations available and then maybe watch a couple of quarters to see how the growth rates come out for the company. So, I remain very positive about pharma. The top pick remains Aurobindo Pharma. We and our clients are invested in it.
Source: ET now