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finished broadly higher today with shares in Japan leading the region. The Nikkei 225 is up 1.07% while Hong Kong’s Hang Seng is up 0.43% and China’s Shanghai Composite is up 0.13%. European markets are higher today with shares in Germany leading the region. The DAX is up 0.67% while France’s CAC 40 is up 0.29% and London’s FTSE 100 is up 0.06%.
The rupee was trading at 66.94 against the US$
in the afternoon session. Oil prices were trading at US$ 40.70 at the time of writing.
Shares of Berger paints
finished the trading day on an encouraging note (up 2%) after it was reported that the company is looking to expand its Jejuri plant near Pune at an investment of Rs 1 billion by next financial year. The company has taken up a capacity expansion program to enhance production substantially at the plant. Presently, the plant’s capacity is 12,000 tonnes, which will be increased to 22,000 tonnes.
The company will also spend approximately Rs 2.5 billion to ramp up the decorative paints manufacturing capacity at Hindupur unit in Andhra Pradesh. The company has lined up a capital expenditure of nearly Rs 4 billion to strengthen its paints business and double revenue over the next four-to-five years
The company decided to set up manufacturing bases in north eastern India anticipating huge potential and steady growth of these markets
in the forthcoming years.
Berger Paints has reported an increase of 54.6% in consolidated net profit at Rs 1.2 billion
for the first quarter ended June. Company’s net profit in the same period (April-June) of previous fiscal was at Rs 778 million. Income from operations for the quarter ended June 2016
was Rs 12.46 billion as against Rs 11.26 billion in the corresponding quarter of the last year.
Moving on to news from healthcare sector
. According to a leading financial daily, Dr. Reddy’s Laboratories
has successfully completed the previously announced acquisition of eight Abbreviated New Drug Applications (ANDAs) in the US from Teva Pharmaceutical Industries (TEVA) and an affiliate of Allergan plc.
The portfolio being acquired is a mix of six ANDAs pending approval, one approved ANDA and one ANDA with tentative approval, and comprises complex generic products across diverse dosage forms. The combined sales of the branded versions of the products in the US
are reportedly close to US$3.5 billion moving annual total for the most recent twelve months ending in June 2016.
Dr. Reddy’s Lab finished the day up 0.6% on the BSE.
In another development, shares of Natco Pharma
surged 4.1% in today’s trade after the company received final approval of Abbreviated New Drug Application (ANDA) containing a paragraph IV certification filed with the US Food and Drug Administration (FDA) for generic versions of TAMIFLU oral capsules.
The pharma major and its marketing partner Alvogen are the first generic players to receive this approval. TAMIFLU oral capsules had US sales of approximately US$403 million for twelve months ending December 2015, according to IMS Health.
In one of our recent editions of The 5 Minute Wrap Up Premium
, we explain the important points to take into consideration when putting money in pharma companies emerging from regulatory woes