Pharmaceutical industry would grow at 19% in 2013: Morgan Stanley

Pharmaceutical industry would grow at 19% in 2013: Morgan Stanley

MUMBAI: According to a latest report by Morgan Stanley, Indian pharmaceutical industry would grow at 19% in 2013.

" We expect the intellectual property investments in the past few years to start bearing fruits in US and EU markets in FY13. There will be new drug launches, new drug filings and Phase II clinic trials throughout the year.", said Samir Baisiwala, senior analyst with Morgan Stanley in his report. Also other markets such as Japan and other emerging markets could be other growth areas.

However, he further mentions that stock selection would be critical. Earnings momentum, IP expressions and reasonable valuations should be the critical stock picking criterias.

Based on this, the company has given Overweight ( Buy ) and Equalweight (Hold) ratings to the large pharmaceutical stocks. According to the report, long term strategies appear better for Sun Pharma, Lupinand Dr Reddy's Lab. Cipla and Ranbaxy will need to do more to sustain their growth.

Overweight Stocks - Dr. Reddy's Lab, Sun Pharmaceutical, Lupin and Glenmark Pharma

Underweight - Ranbaxy, GSK Pharma and Biocon.