Cipla and Sun Pharma remain our top picks, said Nithya Balasubramanian, director of Sanford Bernstein, on Monday.
Speaking in an interview to CNBC-TV18, she said, “Cipla and Sun Pharmaceutical Industries do remain our top picks. Cipla has been gaining over the last couple of days. I am assuming it has a lot to do with the fact that cases are picking up and Cipla is likely to see incremental sales from Remdesivir, Favipiravir, Tocilizumab etc., but beyond that we like Cipla for increasing visibility in the respiratory generic pipeline that they have in the US.”
“Sun Pharma has become increasingly constructive on their specialty portfolio and what they can do in some of their assets like Ilumya, Cequa, Odomzo in the US market and if it so happens that we go back to a situation where again there are a lot of local lockdowns, larger companies like Cipla and Sun Pharma are likely to gain at the domestic pharma market as well because the stronger the brand is the better the availability and during the lockdowns Doctors also prefer larger brands. So I would assume that’s positive for both the companies. Therefore, both remain as our top picks,” she said.
Talking about Remdesivir, Balasubramanian said, “Number of COVID-19 cases going up and we are hearing news about Remdesivir being out of stock, but companies like Cipla, Dr. Reddy’s Laboratories, Zydus Wellness have announced that they will be beefing up their capacities which is highly likely. So these companies should benefit from the fact that there are more number of patients now getting hospitalised and likely requiring Remdesivir. ”
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