Summary
After 4 - 5 quaters of negative growth, cost cuts, product rationalization etc... we have some good news from bell weather stocks of Indian pharma market.
Dr. Reddy's & Ranbaxy both are reporting profits after of year of dismal performance.
This is also a sign of overall market changing its down ward trajectory.
Analysis
New Generics (products gone off patent recently) have helped Dr. Reddy's & Ranbaxy recently
Both companies are considered bell weather for Indian pharma sector with operations spread across globe & sizable income from international markets.
Going through the pains of slow down both the companies did everything thought in business schools to cut cost & become profitable.
Tactical planning in regulatory fillings have yielded good results for Dr. Reddy's which have benefitted this quater from the New Generics launch.
Going forward we will see considerable turn around in Pharma from India.
