Pharma Sector Update - Potential Upside From Vaccines Priced In? ICICI Securities’ Take
A health care worker prepares a dose of COVID-19 vaccine at a new vaccination site.(Bloomberg News)

Pharma Sector Update - Potential Upside From Vaccines Priced In? ICICI Securities’ Take

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

The pharma stocks which are involved with Covid-19 vaccine have seen a sharp run-up recently, especially post the announcement of phase three vaccination program that also opened up of vaccine supplies for private market.

These stocks under our coverage are Dr Reddy’s Laboratories Ltd., Cadila Healthcare Ltd., Aurobindo Pharma Ltd., Strides Pharma Science Ltd., Pfizer Ltd. and Shilpa Medicare Ltd.

Supplies to private market would help in raising the realisations but we expect competition to be high from domestic and imported vaccines.

This should provide a significant upside in near term, however, we refrain from assigning a multiple to this opportunity as the earnings sustainability remains uncertain and likely increase in competition.

Click on the attachment to read the full report:

ICICI Securities Pharma Sector Update Vaccines.pdf

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