The present is a time wherein a majority of sectors in the economy have not been able to perform well. This has been a direct result of the COVID – 19 pandemic.
In such times, the pharmaceutical industry has been an industry that has improved upon its prevailing performance. However, the performance of certain Indian pharma stocks has been better than the rest. They have been high contributors to the domestic business.
Over the 10 days that have passed, pharma stocks have come across more buyers than ever before.
The stock markets have indisputably witnessed a sell-off across March and April. Shares of pharmaceutical manufacturers have outperformed the benchmark indices.
Across April, stocks of pharmaceutical companies have been livelier than usual. S&P BSE Healthcare index is about to reveal its largest monthly gain, across the past 21 years.
If we consider the case of top pharma countries in India, such as IOL chemicals, Ajanta Pharma, IPCA Labs, Mangalam Drugs, Sun Pharma, Aurobindo Pharma, Biocon, Divi’s Labs, Dr. Reddy’s Labs, and Abbot India, their stocks have advanced in the margin of 10% and 100%, after 1st January 2020.
It is not just the top pharma companies in India that are faring exceedingly well at this point. Even the lesser known companies, such as Kabra Drugs have advanced by 300% in YTD. On similar lines, stocks of companies such as Lasa Supergenerics and Ortin Laboratories have progressed by over 100%.
Positive indicators across the pharmaceutical industry are abundant
When the lockdown had initially gotten underway, the pharmaceutical companies used to operate at 20-30% capacity. They now operate at full capacity afresh.
Baddi, in Himachal Pradesh, accounts for 35-40% of domestic pharmaceutical output in India. Drug production has resumed in Baddi as well.
Major drug associations are sharing know-how
All across India, the prime drug organizations and associations are sharing resources and knowledge. The three of the top industry associations are:
oIndian Pharmaceutical Alliance (IPA)
oThe Indian Drug Manufacturers’ Association
oThe Organisation of Pharmaceutical Producers of India
Each of the three organizations represents MNCs across the pharma hemisphere. They hold meetings every day.
IPA has gone on to express that the largest of the pharmaceutical companies in India are able to operate with a high degree of normalcy, despite the widespread coronavirus crisis.
One of the underlying reasons for the same is that the majority of pharmaceutical companies in India have their pharmacies in Sikkim, a state which has been affected by the coronavirus crisis to a lesser extent. This makes it easier for pharma companies to operate at full capacity.
Secondly, the government has also granted liberty to pharmaceutical companies to operate at full strength, because healthcare is one of the essential services that are available for the citizens of India at this time. People from India and the neighbouring countries are reaping the benefits of the services provided by the pharmaceutical companies at this crucial hour.
Among the top pharmaceutical companies operating in Sikkim at this time are Alembic Pharma and Cadila Healthcare, along with scores of other top names in the pharmaceutical industry.
A few of the other top drug manufacturing locations in India are Goa and Indore. The industrial units at these places are putting in their best efforts to ensure that the processes involved with the pharma industries and the manufacture of drugs do not come by any difficulty. They are pooling resources and trucks such that the drugs manufactured are able to reach the requisite destinations at this critical hour.
Efforts have also been made to ensure that the export of drugs does not halt at this crucial juncture. This is being ensured with the coordination amid the Ministry of External Affairs, the Ministry of Commerce, and the Department of pharmaceuticals.
Maharashtra is the state that has been affected to the maximum extent by the coronavirus crisis throughout India. Nevertheless, 1,900 pharma firms and manufacturing units operating across Maharashtra have received certification from the Maharashtra Industrial Development Corporation (MIDC) to operate and resume activities amid the crisis.
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