Which Companies Benefit from Hydroxychloroquine & Why Analysed Here

If you wanna check the API players for Hydroxychloroquine than you are at the right post as we have listed here the companies with their capacities too.

• Abbott India,
• Rusan Pharma
• Mangalam Drugs
• Unichem Remedies
• Laurus Labs
• Vijayasri Organics

Finished Formulation of Hydroxychloroquine

• IPCA
• Zydus
• Intas
• McW
• Macleods Pharmaceuticals
• Cipla
• Lupin

India's exports of hydroxychloroquine in 2018-19 were only $51 million and the whole current size of the US market is only $220 million, generating about 5.5 million annual prescriptions.

Zydus Cadila is the largest player in the US market with 32 percent market share by volume and the top ten players include Dr Reddy's Lab (10 percent) and Sun Pharma (7 percent).

Pharma and healthcare sector is likely to outperform most other sectors in the coming days, in view of the factors outlined below:

Investments in healthcare Infrastructure (hospitals, medical devices) may emerge as a long term winner as the Govt. realizes, the need to urgently ramp up healthcare facilities. I will not be surprised to see allocation to this sector significantly go up (by up to 1% of GDP or even more).

As regards the pharma segment, it has been beaten down since last 4-5 years and is currently trading at attractive valuations.

(1) The domestic formulation business of pharma companies will not be impacted by COVID 19. That is a big positive.

(2) API business to some extent will shift from China as everyone will like to diversify their supply chains.

(3) US Generics business for Indian pharma companies may also do better as pharmacies may want to build stock. At the same time, the US FDA may relax some of its strict compliance requirements.

(4) Indian companies may gain significantly from the requirement of the hydroxychloroquine / BCG vaccine if the export is permitted. They can end up making substantial margins.

The best way to take pharma and healthcare exposure is through PHD fund rather than directly investing in Pharma Stocks

(1) Avoid significant individual company risks that are reduced in the case of Fund at portfolio level.

(2) At the same time, it should be noted that It is difficult to identify winners in this segment without extensive research.

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