Is pharma sector the new in thing?

Many of my friends in the stock broking field are recommending to buy pharma stocks.

Is Aurobindo a good one to get into?

hi your correct this sector is good for next 2-3 year long term investing .

One thing to remember

1. This sector is not for fireworks.
2. Any drug discovery takes around average 10 years to realize and available in market.
3. It is a capital intensitive industry.

I am holding Pharma Sector MF for around two years now with the hope of some fireworks... sadly it has never took off.
What is the current outlook for this sector or shall I switch funds to some other sector like IT or Banking?

Alternatively if you can suggest me some good reading about prospects of this sector, I will appreciate that.

Thanks guys.

Fully agree.

Additionally, the MNC pharma cos are reluctant to spend on R&D given our position on patents.

Sadly, most of our Indian major pharma companies are producing generics and off-patent drugs where the volumes may be high but margins low.

And the controlled prices of popular drugs also will adversely affect companies' pricing power.

If you want, some pharma (MNC) stocks can be seen as dividend-plays and possible buy-backs. Novartis, which spun off Syngenta and then delisted the latter is one such company.

The scrutiny of Ranbaxy's products in the US seems to be rubbing off on other Indian pharma companies as well, at least as far as their performance in the share market goes.

Conspiracy theorists claim that whenever a country is challenged, it can respond by faulting the quality of the competitor country's products. .

Hello Alchemist,

I remember in one of the thread you mentioned that Pharma is one sector to consider for the future. Can you please post your views on the sector list some of the companies to look for for long term perspective.

Hello!
I want to add pharma stock in my kitty. Horizon= 2-3 yrs. Kindly give suggestions, especially on Jubilant Organosys, Cadila & Cipla!
mr india