Taro Q4 results spook pharma majors, shares tank

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Offers of pharmaceutical organizations remained among top failures in Tuesday’s Trade with BSE Healthcare list diving almost 3 per cent.

Gufic BiosciencesBSE – 6.13 % slipped 6.13 per cent, trailed by Aurobindo pharmaBSE – 5.94 % (down 5.94 per cent), Orchid pharma (down 5.57 per cent), CiplaBSE – 4.89 % (down 4.89 per cent), Morepen LaboratoriesBSE – 4.76 % (down 4.76 per cent), Sun pharmaBSE – 4.33 % (down 4.33 per cent), Lincoln Pharma (down 4 per cent), Syngene (down 3.96 per cent) and DishmanBSE – 2.72 % (down 2.82 per cent).

Among other top failures, RPG Life sciencesBSE – 3.06 % declined 3.06 per cent.

Sun pharma and Divi’s Labs settled lower by 3.17 per cent and 3.29 per cent, individually.

Sarabjit Kour Nangra, VP Research – Pharma, Angel Broking stated, “The pharma stocks were spooked by the quarterly aftereffects of Taro Pharmaceuticals, which is the abroad arm of Sun Pharma.”

Taro Pharmaceuticals announced a 26 per cent decrease in incomes for the March quarter and a 28 per cent fall in net benefits contrasted with the year-prior period.

“The EBITDA edge, a pointer of working gainfulness of Taro, really observed 1,600 premise focuses shrinkage, which raised worries over the working financial matters of Taro Pharmaceuticals,” said Nangra.

In any case, offers of Sequent logical shut 4.73 per cent down at Rs 123.90. It was trailed by Caplin Point Laboratories LtdBSE 3.82 %. (up 3.82 per cent), Fortis (up 0.74 per cent), HCG (up 0.20 per cent) and GlaxoSmithKline (up 0.08 per cent).

With weak results expected from Sun Pharma and AurobindoBSE -5.94 % as well as a negative guidance issued by GlenmarkBSE -2.65 %, Indian pharma sector looks likely to operate in a difficult environment, according to market experts.

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