Jeffries expects healthy growth for Indian healthcare firms in Q3FY24
Lupin (at 8% YoY) and Dr Reddy’s (at 6% YoY). “We expect the highest growth rate for Torrent pharma (+16% YoY) due to Curatio acquisition and Cipla (+12% YoY) and lowest for Lupin (+8% YoY) and Dr Reddy’s (+6% YoY). We expect India business to witness some gross margin improvement on benign RM (raw material) costs and seasonality impacts," it added.
The brokerage firm expects the US pricing environment to remain benign as the companies under its coverage push for sequential sales growth in the third quarter of the current fiscal year. It further pegged Sun Pharma to record the highest QoQ growth of the company on the back of its seasonal special products, along with traction in the recently launched gVyvanseand the surge in sales of Albuterol and Ipratropium combination. “Lupin (+4% QoQ) to gain from gSpiriva sales and Darunavir exclusivity.
Dr Reddy’s (+2% QoQ) sales growth would be mainly led by higher gRevlimid sales and Zydus's (+3% QoQ) sales increase will be driven by the Indomethacin launch. For Cipla, our numbers are in line with management guidance of $220-225 million run-rate," Jefferies noted in the research report. Jefferies doesn’t expect any material gain from flu products in the US as there hasn’t been any significant uptake for the drugs this season.
The report also notes that Contract, Development and Manufacturing Organization (CDMO) firms like Divi’s Laboratories will start recording positive numbers with headline growth improving. The report also notes that although hospitals are entering a seasonally weak quarter, their performance is likely to remain decent. “Among CRO/CDMO, we expect company-specific factors at play while hospitals will continue to deliver double-digit EBITDA growth, though
. Read more on livemint.com
