While global stock markets take a COVID-19 beating, Indian drugmakers doing well

At a time when most sectors on the stock markets have taken a beating, courtesy of the COVID-19 pandemic, the pharmaceutical industry has outperformed, with some Indian pharma stocks that have higher contribution to the domestic business registering a stronger performance than peers. Pharma stocks have clocked massive buying in the last 10 days, reports The Pharma Letter’s India correspondent.

Despite the massive sell-off in the stock market in March and April in India, shares of pharma companies outper.formed benchmark indices. This month, stocks of drug companies further appear to have a new lease of life, as the coronavirus pandemic gained a tighter grip on the country, resulting in the S&P BSE Healthcare index readying to post its biggest monthly gain in 21 years.

The stock of top pharma players like Abbott India, Dr Reddy's Labs, Divi's Labs, Biocon, Aurobindo Pharma, Sun Pharma, Mangalam Drugs, IPCA Labs, Ajanta Pharma and IOL Chemicals have advanced between 10% and 100% since January 1, 2020.