Indian pharmaceutical industry to grow 19% in 2013

Hannah Blake

pharmaphorum

The Indian pharmaceutical industry is set to grow by 19% in 2013, according to a recent report by Morgan Stanley.

"We expect the intellectual property investments in the past few years to start bearing fruits in US and EU markets in FY13. There will be new drug launches, new drug filings and Phase II clinic trials throughout the year.”

Samir Baisiwala, senior analyst with Morgan Stanley, in his report.

The report also mentions other growth areas for the pharmaceutical sector, which includes Japan and the emerging markets. According to Samir, stock selection over the next year will be critical.

Based on this, the company gave ratings to the large pharmaceutical stocks. Long-term strategies appear better for pharmaceutical companies such as Dr Reddy’s and Sun Pharma, while Cipla and Ranbaxy will need to do more to sustain their growth.

"We like Dr Reddy’s (under-appreciated US pipeline), Lupin (good mid-term pipeline visibility), Sun (best domestic business, complex technologies, value unlocking) and Glenmark Pharma (NCE research optionality),"

As mentioned in the Morgan Stanley report.

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