India's Alkem to take maximum hit from combination drug ban - Nomura

Ipca Laboratories

14/09/2018 06:30

** Nomura says Alkem Laboratories Ltd  ALKE.NS  will take
the maximum hit from Indian govt's decision to ban 328
combination drugs, among the firms it covers 
    ** Two pct to 3 pct of Alkem's domestic pharma sales are
likely to be impacted by ban, as per co - Nomura 
    ** These 328 drugs have a market size of ~15 bln rupees
($209.02 mln), representing about 1.3 pct of overall market -
Nomura  
    ** Overall impact will be limited as most large cos have
discontinued the brands or have made necessary changes and
reformulated - Nomura
    ** Impact on IPCA Laboratories Ltd  IPCA.NS  and Lupin Ltd
 LUPN.NS  expected to be less than 2 pct of their domestic
sales; impact to be less than 3 pct and 2 pct respectively, on
FY20 earnings estimates - Nomura
    ** Indian govt banned 328 combination drugs, saying there
was no therapeutic justification for their constituents and that
they may involve risk to human beings  urn:newsml:reuters.com:*:nL3N1VZ33K
    ** As of last close, Alkem stock had declined 3.3 pct, Lupin
gained 8.4 pct and IPCA climbed 29 pct this year
    ($1 = 71.7625 Indian rupees)

 ((Reuters Messaging: sharnya.g.thomsonreuters.com@reuters.net))