InvestorQ : Why did pharma stocks correct sharply on 08 June?
indhumathi Sayani made post

Why did pharma stocks correct sharply on 08 June?

Answer
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shrinidhi Rajan answered.
3 months ago


The Sensex lost more than 550 points from the peak of the day as pharma contributed to bringing the markets sharply lower. There were quite a few factors. Firstly, there are expectations that the unwillingness of people to visit clinics and pharmacies may result in a drop in medicine sales. Secondly, the proposed joint deal between Gilead and AstraZeneca is expected to dilute India’s position in the Coronavirus efforts. It must be recollected that Indian companies like Cipla, Jubilant Life and Hetero Drugs are licensed to manufacture Remdesivir under the FDA’s emergency approval. There was a fear that this could be impacted by the proposed deal between Gilead and Astra.