Pharma stocks outlook: Four reasons why pharma stocks could fall out of favour as Covid recedes

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As the regulatory work of USFDA gains pace, companies are likely to receive observations and alerts of the drug regulator.

Synopsis

The sector that had peaked out on the bourses in 2015 saw buying interest due to the focus on healthcare. However, the interest is likely to wane as Covid recedes.

ET Intelligence Group: One of the upticks of the Covid-ridden stock market was the revival of sentiment in pharma stocks. The sector that had peaked out on the bourses in 2015 saw buying interest due to the focus on healthcare. However, the interest is likely to wane as Covid recedes. 1. One-time boost from Covid drug salesThe brisk sale of Covid drugs provided an exceptional boost to the domestic sales of companies such as Cipla and Glenmark.

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