Pharma companies look pale today. Know why

Pharma giant Lupin Ltd. was the top loser on the Nifty after its first quarter earnings fell much below street's expectations, pushing the Nifty component to a 1-month low on the charts. Additionally, Lupin purchased a US firm for $880 million.

Lupin reported its first quarter consolidated Net Profit fell to 525 crore rupees versus 625 crore rupees in the same period a year ago. Similarly, the April-to-June period saw Lupin's sales dip to `3,070 crores compared with 3,284 rupees in the same period a year ago.

The market was expecting a PAT of 580 crores on sales of 3,345 crore rupees.

Lupin's stock, meanwhile, dropped 5.5 percent, or 95 rupees, to 1,729 rupees on the National Stock Exchange with 42 lakh shares changing hands on the exchange.

Sentiment has weakened on pharma companies after Sun Pharma gave a profit warning two days ago, post its merger with Ranbaxy.

(Image credit: Indiatimes)