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The export story for many Indian pharma companies seems to be over. Midrung companies like IPCA, Alembic in their Q3 results declared earlier this week have shown flat or lower sales. API exports are facing a lot of price pressure according to these companies. On the other hand, Cipla in its results today says it's targetting 25% growth in exports. Ranbaxy (OTC:RBXLF) had also complained of price pressure in its results. Dr Reddy's (NYSE:RDY) results have shown some growth, and also a large profit recovery. The latter is mainly the result of some financial engineering.

The domestic formulations market is something everyone seems to be targeting. Most companies are talking about 20% growth from domestic formulations. Where is this coming from? In some cases, it could just be a case of pushing new products into the market. This means there may be no end to customer pull yet -- the sales may just be at the primary and secondary level, not tertiary (final consumer level). With the stock market going the way it is, there is strong incentive to show growth somewhere.

So the time to get positive on pharma is not around yet. Lets see one more quarter.

Source: Indian Pharma Companies: No Respite Yet (RDY, RBXLF)