Fall of Pharma

It's tough being a pharma company these days. Gone are the days of extra-normal growth, high profits and an easy USFDA. Many top companies are struggling to maintain even sales momentum. Here are a couple of things that have gone wrong for the sector in recent months. Stagnating revenue: For a long time, pharma was considered an evergreen industry. There was no way for pharma stocks to go but up. Medicines, it was surmised, were an essential requirement for billions. Today, the top ten pharma companies in the country (by market cap) are seeing revenue growth stagnate - from 14.7 per cent a year ago to 14.5 per cent in the last 12 months. Dr. Reddy's, Aurobindo Pharma, Cadila Healthcare and Torrent Pharma have seen revenue growth fall particularly hard in the last 12 months as compared to the previous year. Losi