Q2 result preview: Strong US performance to lift the show for pharma companies

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Also Read - Q2 Earnings Preview: Mixed bag performance for mining, metals sector: Nuvama Companies such as Sun Pharmaceutical Industries Ltd, Dr Reddy’s Laboratories Ltd, Lupin Ltd, Zydus Lifesciences, Cipla Ltd etc are likely to remain in focus, having significant dependance on the US market contributions in their earnings growth. As per Surya Patra, research analyst at PhillipCapital Institutional Equity research , while the US generic price pressure eased sequentially, the incremental benefits from key launches (including generics of Revlimid, Spiriva, Chantix, etc) and 4% Rupee depreciation year-on-year complements US generics growth.

Companies under PhillipCapital coverage universe are estimated to deliver 15% year-on-year growth led by more than 20% growth by Aurobindo Pharma, Cipla, Zydus, Lupin largely due to contributions from generics of Revlimid and respiratory products Spiriva. Analysts at Motilal Oswal Financial Services Ltd also expect Lupin Cipla, Aurobindo to deliver strong 32%, 29%, 21% year-on-year growth respectively in 2Q.

Also Read- Infosys Q2 Results Preview: Expect muted CC revenue growth; commentary on deal pipelines to be in focus The momentum in the US sales growth is likely to continue moving forward too. High price erosion, occurring a year or so after Covid, prompted multiple players to exit products where they did not have a fair market share, This, in turn, has resulted in shortages in the market, leading to improved pricing dynamics said said Prashant Nair Lead Analyst, Healthcare and Pharma, Ambit Capital.