Small is beautiful in pharma

The pharmaceutical sector has had a successful run for quite some time in the markets. A strengthening ANDA (acronym for Abbreviated New Drug Application; an application for generic drug approval in the US) portfolio and higher earnings growth visibility have been the main boosters for the pharma sector's outperformance. Big pharma companies, like Sun Pharma, Lupin, Dr. Reddy's, have been in high demand and are market favourites. High earnings visibility and secular earnings growth meant that large-cap pharma stocks were preferred over their mid-rung peers. This has taken valuations of large-cap pharma st