In market cap, 3 of top 5 pharma cos from Hyd

  • | Friday | 14th December, 2018

HYDERABAD: The city’s standing as India’s pharma capital has got another boost with Aurobindo Pharma , Dr Reddy’s Laboratories (DRL) and Divis Laboratories now ruling the roost when it comes to the exclusive top 5 club of listed pharma companies in India in terms of market capitalisation.The other two firms in the big 5 league by market cap, based on closing prices on stock exchanges on Thursday, are from Mumbai: Sun Pharmaceutical and Cipla. Aurobindo has also managed to sustain its performance with low investments in research & development as compared to other big pharma players, an analyst pointed out. Incidentally, the three Hyderabad companies and two Mumbai companies had a market cap of over Rs 40,000 crore as per Thursday’s closing prices on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), leaving behind other biggies like Mumbai-based Lupin (Rs 38,273 crore-BSE mcap) Cadila Healthcare (Rs 35,784 crore-BSE), Torrent Pharma (Rs 30,232 crore-BSE) and Bengaluru-based biopharma player Biocon (Rs 38,430 crore-BSE). What’s more, Aurobindo Pharma, founded by K Nityananda Reddy and PV Ramprasad Reddy, has emerged as the biggest listed pharma company from Hyderabad, occupying second spot in terms of market cap (over Rs 43,950 crore) and unseating Dr Reddy’s Laboratories , which enjoyed a long stint as only pharma player from Hyderabad in the big league.Divis too wears the big cap, finds place among the top 5Based on Thursday’s closing prices, DRL, which was set up by K Anji Reddy and is now run by his family, stood third in the top 5 with a market cap of around Rs 43,119 crore (NSE). On the other hand, DRL has found itself mired in regulatory issues over the past few years and is only just coming out of the worst of times,” explained industry veteran VS Vasudevan.

HYDERABAD: The city’s standing as India’s pharma capital has got another boost with Aurobindo Pharma , Dr Reddy’s Laboratories (DRL) and Divis Laboratories now ruling the roost when it comes to the exclusive top 5 club of listed pharma companies in India in terms of market capitalisation.The other two firms in the big 5 league by market cap, based on closing prices on stock exchanges on Thursday, are from Mumbai: Sun Pharmaceutical and Cipla. What’s more, Aurobindo Pharma, founded by K Nityananda Reddy and PV Ramprasad Reddy, has emerged as the biggest listed pharma company from Hyderabad, occupying second spot in terms of market cap (over Rs 43,950 crore) and unseating Dr Reddy’s Laboratories , which enjoyed a long stint as only pharma player from Hyderabad in the big league.Divis too wears the big cap, finds place among the top 5Based on Thursday’s closing prices, DRL, which was set up by K Anji Reddy and is now run by his family, stood third in the top 5 with a market cap of around Rs 43,119 crore (NSE). While DRL posted net sales of around Rs 14,203 crore for the fiscal ended 2017-18, Aurobindo had notched up net sales of Rs nearly Rs 16,602 crore for the same period.Apart from Aurobindo and DRL, Hyderabad-headquartered active pharmaceutical ingredients manufacturer Divis Laboratories too has managed to make a place for itself in the top 5 with a market cap of over Rs 40,371 crore.Of course, Mumbai-based Sun Pharmaceutical Industries Ltd continues as the undisputed numero uno among listed pharma companies in India with a market cap of over a whopping Rs 1.01 lakh crore.According to analysts, Aurobindo Pharma has managed to trump DRL thanks to its consistent performance and a string of acquisitions over the past few years, while the latter has been bogged down by persistent regulatory hurdles for the past three years or so.“Aurobindo has managed to capture the imagination of investors because of its consistent performance, ability to resolve regulatory issues quickly as well as corporate actions like acquisitions in the past few years. On the other hand, DRL has found itself mired in regulatory issues over the past few years and is only just coming out of the worst of times,” explained industry veteran VS Vasudevan. Incidentally, Aurobindo has been on a shopping spree in the past few years, acquiring Sandoz’s US business for US$900 million in September this year, purchasing Apotex’s commercial operations in five European countries for Euro 74 million earlier in 2018 and buying Portugal’s Generis Farmaceutica for Euro 135 million in 2017. Aurobindo has also managed to sustain its performance with low investments in research & development as compared to other big pharma players, an analyst pointed out. Incidentally, the three Hyderabad companies and two Mumbai companies had a market cap of over Rs 40,000 crore as per Thursday’s closing prices on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), leaving behind other biggies like Mumbai-based Lupin (Rs 38,273 crore-BSE mcap) Cadila Healthcare (Rs 35,784 crore-BSE), Torrent Pharma (Rs 30,232 crore-BSE) and Bengaluru-based biopharma player Biocon (Rs 38,430 crore-BSE).

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