ICICI Securities: Pharma Sector 2021 Outlook - Valuation Rerating To Sustain 
An employee operates machinery to arrange capsules for packaging inside the packaging unit at Lupin’s plant in Goa, India. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: Pharma Sector 2021 Outlook - Valuation Rerating To Sustain 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We remain positive on the pharma sector for next year as we expect growth in India formulations to revive to 10-11%, cost control measures undertaken during the pandemic to aid profitability, and positive growth in U.S. sales on a corrected base coupled with normalised price erosion.

Pharma companies under our coverage witnessed an average 58% increase in stock prices over the past one year largely due to improved profitability and valuation rerating given growth visibility.

U.S. Food and Drug Administration inspections have been restricted in CY20 due to the pandemic and would resume once the Covid-19 situation normalises.

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ICICI Securities Pharma Outlook 2021.pdf

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