Dear Friends
The recent corona virus outbreak is a great booster for the Pharma industry. But by how much ? Will all of us consumer medicines more everyday or only when we need it. For pharma to do well, people will have to be incrementally more unwell or Pharma industry should have more pricing power { which is not going be acceptable to governments }.
Hence i conclude the following
1. Pharma is a place to hide for sure
2. A decisive break out of the channel will lead to a scramble in this under-owned industry
3. Valuations will expand and move towards the FMCg kind some day.
4. But First .... a break -out is required for further buying. Till then pause and be cautious
Please focus more on API suppliers/diagnostics / hospitals, medical equipment manufacturers etc., All of this are more expensive than the tablets that they recommend themselves.
ps: Think of Apollo Hospitals as a hotel { medical tourism} and when travel revives this shall see bigger rebound. Till then a Lal Path labs etc.,
Regards
Srikanth
The recent corona virus outbreak is a great booster for the Pharma industry. But by how much ? Will all of us consumer medicines more everyday or only when we need it. For pharma to do well, people will have to be incrementally more unwell or Pharma industry should have more pricing power { which is not going be acceptable to governments }.
Hence i conclude the following
1. Pharma is a place to hide for sure
2. A decisive break out of the channel will lead to a scramble in this under-owned industry
3. Valuations will expand and move towards the FMCg kind some day.
4. But First .... a break -out is required for further buying. Till then pause and be cautious
Please focus more on API suppliers/diagnostics / hospitals, medical equipment manufacturers etc., All of this are more expensive than the tablets that they recommend themselves.
ps: Think of Apollo Hospitals as a hotel { medical tourism} and when travel revives this shall see bigger rebound. Till then a Lal Path labs etc.,
Regards
Srikanth