Author Topic: Pharmaceutical Sector  (Read 61275 times)

0 Members and 1 Guest are viewing this topic.

Offline The_Dot

  • .
  • Junior Member
  • **
  • Posts: 343
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #199 on: June 29, 2017, 01:12:46 PM »
100 Index Postive: Pharma is negative

Index Negative: Pharma has to be very negative.

the most beaten sector perhaps, lately!

35% down in Feroz (577 avg.)

25 % down Glaxo (347 avg)

Searl (avg. 570)

Please advise how to tackle the situation. 
Every 'stock' has its day.

Pakinvestorsguide

Re: Pharmaceutical Sector
« Reply #199 on: June 29, 2017, 01:12:46 PM »

Offline MZ

  • Research
  • Senior Member
  • *****
  • Posts: 10142
  • Thanks Received: 33
    • View Profile

Offline MZ

  • Research
  • Senior Member
  • *****
  • Posts: 10142
  • Thanks Received: 33
    • View Profile
Re: Pharmaceutical Sector
« Reply #201 on: December 11, 2017, 08:10:37 PM »
KseAlert
Back
Pharmaceuticals: Volumetric plays outshine in 3Q; currency risks lie ahead

Monday, 11 December 2017

By: Intermarket Securities Limited
3QCY17 earnings growth was modest (+4%YoY) for IMS Pharma Universe (GLAXO, ABOT, SEARL & HINOON), and negative (-1%YoY) when including FEROZ. Growth in core pharmaceutical division emanated from GLAXO & HINOON.
9MCY17 industry GMs (ex. FEROZ) stood flat at 37%, while recovering sequentially (3Q: 38% vs. 35% in 2Q) as 2H tends to be seasonally better. Volumetric plays remain on our radar (9M sales: up 14%YoY) where both SEARL & GLAXO focus on growing their product offerings (SEARL: in the process of setting up US FDA approved plant, expected launch of anti-cancer drug by 2018-19; GLAXO: incurred PRs771mn capital expenditure in 9M on capacity enhancement and plant upgradation.c
Being significantly import dependent for its raw material (APIs, generics etc), on-going pressure on PKR stands as key downside risk. We sight companies that have deferred CPI price increase to CY18 (at the cost of flat-negative GMs in CY17) will be resilient. For the companies we track, annualized P/E and P/S comes to 18.9x and 2.3x, having corrected 20%CYTD (ex-Feroz). Although sector valuations stand at a discount vs. the region (Region: PE: 32.6x, P/S: 2.7x), a weaker PKR may open up further downside for now.
IMS Pharma Universe posted 3Q NPAT (Ex-Feroz) of PRs2.85bn up 4%YoY (9M: up 12%YoY). Among the heavy weights (by market cap) HINOON and GLAXO led the fore with volumetric growth (sales up: 21%YoY/11%YoY respectively). Although 3Q sector profitability remained flat, 9M earnings growth is reflective of healthy volumetric uptick.

Offline kpall99

  • Junior Member
  • **
  • Posts: 336
  • Thanks Received: 2
    • View Profile
Re: Pharmaceutical Sector
« Reply #202 on: February 05, 2018, 10:08:15 AM »

LAO PHARMA  :dance

https://www.dawn.com/news/1387433/drug-makers-feel-a-little-better-after-change-in-pricing-policy

Drug makers feel a little better after change in pricing policy


THE government’s decision to allow drug makers and importers to adjust prices on their own in line with inflation is expected to put burden on low-income households. In contrast, the pharmaceutical industry naturally thinks it’s a step in the right direction.

The decision means there will be an automatic increase in drug prices on July 1 every year based on annual growth in the headline Consumer Price Index of the previous financial year.

Although the Drug Pricing Policy of 2015 links increase in domestic drug prices with inflation, manufacturers could not increase prices without federal government approval. However, the government has now amended the policy to let them increase or adjust prices to inflation without an official notification. The decision was made by the federal cabinet at a meeting early last month, according to a newspaper report.

Under the 2015 drug policy, manufacturers can raise the maximum retail price of drugs by up to 50 per cent of the annual rate of inflation in case of the scheduled (essential and life-saving) drugs with a cap of 4pc, up to 70pc in case of non-scheduled drugs with a cap of 6pc, and equal to inflation in case of low-priced medicines.
Advertisement

The first inflation-linked price adjustment under the policy was notified a month late in August 2016, but the notification for the second year has been issued about seven months late, ie in January, industry sources said.

    The pharmaceutical industry says a freeze in drug prices has forced firms to stop making several medicines

After the announcement of the pricing policy, the government increased maximum retail prices of essential or life-saving drugs to ensure their availability in the market. Additionally, around 300 companies approached courts to ward off action by the government against them for arbitrarily increasing the prices of around 700 medicines back in 2016 without approval from the regulator.

The cabinet has also decided to allow cumulative increase in drug prices where cases are pending with the courts.

Although the inflation-linked price adjustment was allowed under the new pricing policy after a complete freeze of 15 years on domestic prices of medicines, there is little cause for cheer for producers.

“(Let me clarify that) this is not a price increase, this is just a ‘partial’ adjustment of rate of inflation in the drug prices,” argued Ayesha Tammy Haq, the executive director at the Pharma Bureau, a conglomerate of large foreign pharmaceutical companies operating in Pakistan that control 39pc of the market share and account for 42pc of the market value.

She described the cabinet’s decision to make automatic inflation-linked drug price adjustment under the policy as a step in the right direction, but added: “It doesn’t really help much... this doesn’t address (our) problems. How can a company continue to make a drug if its cost is double than its retail price (in spite of adjustment of inflation)?”

Ms Haq said a freeze in drug prices had forced firms to stop making several medicines because low prices made it difficult for manufacturers to recover costs. “This is a major reason for increased influx of smuggled medicines and the proliferation of spurious drugs in the market,” she claimed.

She reiterated the industry’s view that the government should be regulating the quality of products being supplied in the market instead of regulating prices. “The government should develop a list of essential, life-saving drugs and regulate their prices, deregulating the rest of the market. The competition will not only keep the prices in check but also help pull them down in the long term.”

Executives of local pharmaceutical companies agree. “I hope this decision will provide some relief to the industry burdened by growing cost of doing business and stagnant domestic prices,” said Quratul Ain Irfan, the vice president of Pacific Pharma. “The government should now consider reducing the tax burden on the industry to make investments in this sector attractive and profitable.”

She said the higher cost of production in the last 17 to 18 years had driven some companies out of competition, forced several foreign manufacturers to quit Pakistan at the expense of competition and product quality in the domestic market, and slowed down new investments in expansion and quality improvement.

“There is a lot of potential for new investment in this industry as the country’s population has already crossed 207 million,” she said. “We can also capture a big export market share in the developed economies like the European Union and Australia, provided our companies become profitable enough to make the required investments in their production processes and product quality to meet international standards.”

Pakistan’s total drug exports have stagnated at around $200m compared to India’s growing shipments of $27 billion.

The cabinet decision has triggered fears that the inflation-linked price adjustment in drug prices could add to the burden of an already large amount of monthly health expenditure of lower- and middle-income households because of the state’s decision to significantly cut per capita spending on public health.

But Amjad Jawa, another manufacturer, insisted it would not.

“Drugs form just a fraction of your overall health expenditure. It’s the rise in oil, electricity and food prices that affect the lower and middle class more than the monthly expenditure on medicines,” he said. “Besides, the government should spend more on public health facilities, and make health insurance of everyone working in public and private sectors mandatory. There can be different ways that can help you strike a balance between welfare of the vulnerable groups and viability of the industry.”

Published in Dawn, The Business and Finance Weekly, February 5th, 2018
Risk comes from not knowing what you're doing. Warren Buffett

Offline Farzooq

  • Administrator
  • Senior Member
  • *****
  • Posts: 21927
  • Thanks Received: 196
    • View Profile
Re: Pharmaceutical Sector
« Reply #203 on: February 20, 2018, 09:57:54 PM »
Pakistan Pharma: Legal case raises concerns on product prices

Pharma stocks have dropped 7% in the past week. We attribute the price reaction to two reasons; (i) hearing of a legal case on medicine prices in the Supreme Court (SC), and (ii) growing possibility of further devaluation (we expect another bout of devaluation of at least 5% to happen before Mar’18).

The SC recently conducted hearing on a case involving a stay order from Sind High Court (SCH) on prices of medicines falling under hardship cases, a category defined as products having trade prices below manufacturing cost plus relevant margin in Drug Pricing Policy 2015.

Reportedly, the SC has directed SHC to announce its verdict on the case within the next 15 days to avoid removal of stay order by the SC. The next hearing on the case is expected to be held during the 1stweek of Mar’18.

The policy apparently allows pharmaceutical companies to raise prices on products in case the Drug Regulatory Authority (DRAP) fails to notify price on hardship products in a stipulated time. Pharma companies used this option and raised prices by 15-50%, as per media reports. Companies later obtained stay orders from the relevant courts on price increase in order to avoid regulatory action from DRAP.

Details on exact products under hardship cases and revenue/profit contribution for listed stocks are not available. However, we believe in case of unfavorable decision by either SHC or SC, the impact on earnings may not be material.

            Despite price increase, margin and contribution of such products to overall                        earnings of pharmaceutical companies is still believed not to be significant                        in most cases.

            Secondly, the pharmaceutical companies may approach DRAP again to pitch the               case for price increase.

            Thirdly, up to 8% price increase under over 40 hardship products was reportedly               approved by the DRAP, hence, the case for price increase remains.

We do not expect the above case to have any bearing on annual price revision which has been linked with country’ inflation (50% of CPI on scheduled, 70% on non-scheduled products). Recent annual revision was notified by the regulator in 1st week of Feb’18.

Though the sector is not under our coverage, overall we believe Searle, GSK, Hinoon and Ferozesons among the listed companies may be impacted the most due to potential adverse decision on hardship product prices (6-9% earnings impact, see side bar).

bma
TOP PICKS
Engro efert ogdc ppl pso dgkc luck hubc ubl hbl atrl nrl nml efoods aicl hcar searl

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #204 on: January 11, 2019, 02:31:49 PM »
Laaoooo maaal whole pharmaceutical sector cap.  :clap1:
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Offline Moazzam

  • Junior Member
  • **
  • Posts: 205
  • Thanks Received: 5
    • View Profile
Re: Pharmaceutical Sector
« Reply #205 on: January 11, 2019, 03:08:36 PM »
upto 15% hike in prices of medicines

https://www.dawn.com/news/1456901
When investing, pessimism is your friend, euphoria the enemy.

Offline Thelma

  • Active Member
  • ***
  • Posts: 587
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #206 on: January 11, 2019, 03:11:54 PM »
Laaoooo maaal whole pharmaceutical sector cap.  :clap1:
Some r cursing the govt for making the lives of poor people more miserable by making dawa expensive and some people r jumping with joy because their share has capped ....

aharoon

  • Guest
Re: Pharmaceutical Sector
« Reply #207 on: January 11, 2019, 03:23:57 PM »
Laaoooo maaal whole pharmaceutical sector cap.  :clap1:
Some r cursing the govt for making the lives of poor people more miserable by making dawa expensive and some people r jumping with joy because their share has capped ....
Koe poor voor nahin sab dramay baaziyan Hain public ke.. 2000 ka pizza khatay Hain 15000 pm beaconhouse afford kartay Hain .. mout aati hai medicines khareedtay waqt.. dramaybaaz kahin Kay.. bachay ka Doodh ka dabba wholesale Mai chaheay aur Benson Goldleaf Marlboro ciggerette retail Mai khareedtay hain

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #208 on: January 11, 2019, 11:44:56 PM »
Laaoooo maaal whole pharmaceutical sector cap.  :clap1:
Some r cursing the govt for making the lives of poor people more miserable by making dawa expensive and some people r jumping with joy because their share has capped ....

Its norms of business, since APIs of pharmaceutical are all imported and our currency devalue massively around 40% within a year  this price adjustment were on card, there is free treatment and medication available in Govt hospitals.

If you have pharmaceutical factory how you will keep rising input cost in your pocket.
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #209 on: January 14, 2019, 01:29:35 AM »
http://www.dra.gov.pk/docs/media/PressReleaseIncreasePrice.jpg

DRAP press release on price increase. 11th January 2019.
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Offline tariq54

  • Active Member
  • ***
  • Posts: 597
  • Thanks Received: 2
  • “Both bull and bear can be your friends.”
    • View Profile
Re: Pharmaceutical Sector
« Reply #210 on: January 14, 2019, 08:06:02 PM »
upto 15% hike in prices of medicines

https://www.dawn.com/news/1456901
Good for all pharmaceutical sector

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #212 on: January 30, 2019, 11:34:16 PM »
https://www.thenews.com.pk/latest/425609-15-million-pakistani-families-to-get-health-card-contract-signed

The services which are available from Sehat Insaf Card includes open heart surgeries, insertion of stunts, management of cancer, neurosurgical procures, burn management, accident management, dialysis, intensive care management, deliveries, C section and other medical / surgical procedures.
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #213 on: January 31, 2019, 10:15:36 AM »
Rocking  :dance :dance :dance
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Offline sundeepparwani

  • Junior Member
  • **
  • Posts: 119
  • Thanks Received: 1
    • View Profile
Re: Pharmaceutical Sector
« Reply #214 on: January 31, 2019, 02:39:26 PM »

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #215 on: January 31, 2019, 05:41:01 PM »
PHC stays implementation of 15% hike in medicine prices
https://tribune.com.pk/story/1900879/1-phc-stays-implementation-15-hike-medicine-prices/

Its being challenged in LHC earlier but nothing happened, basically Govt allowed increase after DRAP recommended and they have proper workings and basis behind price increases, later DRAP issued press releases on their website for public for reasons of increases.
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #216 on: February 03, 2019, 08:12:54 PM »
Sehat card to be launched tomorrow covering medical expenses of 700-800k
- Fawad Chaudhry (press conference)
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Offline shahmeer

  • Junior Member
  • **
  • Posts: 156
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #217 on: February 03, 2019, 09:03:20 PM »
Sehat card to be launched tomorrow covering medical expenses of 700-800k
- Fawad Chaudhry (press conference)
good mews for pharma.or aj to hearing bhe the phc
main .any news?

Online optimistic

  • Senior Member
  • *****
  • Posts: 4904
  • Thanks Received: 0
    • View Profile
Re: Pharmaceutical Sector
« Reply #218 on: February 03, 2019, 09:29:09 PM »
Sehat card to be launched tomorrow covering medical expenses of 700-800k
- Fawad Chaudhry (press conference)
good mews for pharma.or aj to hearing bhe the phc
main .any news?

No idea on PHC hearing its case between Federal Govt + DRAP v/s PHC petitioner. 
TOP Scripts as below: Updated (28th Nov, 2016)
1. Wyeth, 2. SHJS, 3. FFLNV, 4. TGL, 5. BERG, 6. APL, 7. PKGS, 8. EPQL, 9. ISL, 10. FFBL. 11. TRIPF. 12 ASL

I am not perfect. Please do your own research my comments / or views may not prove accurate, nor i advise anyone to act upon on my recommendations, nor i accept any responsibility on me. Your money, your gain / or loss, before investing into any script better you gain sufficient knowledge of business and calculate risk accordingly as per your risk appetite.

Tags: