It is believed that the Indian pharmaceutical sector is expected to grow to the US $100 billion by 2025. Branded generics dominate the pharmaceutical market. It constitutes 80% of the market share in terms of revenues. It is expected that the Pharma sector will generate additional job opportunities of 58,000 by 2025. Most the Indian companies received 336 Abbreviated new drug application (ANDA) approval from the USFDA, accounting for 40% of total final ANDA approval in 2019.
A large pipeline of high-value drugs and a decline in regulatory alerts for larger companies are expected to drive growth. This article compromises pharmaceutical and life science companies to allow investors to track and invest in the pharma sector efficiently.
The companies are classified into different groups that are listed on stock exchanges. They are primarily based on sectors or conglomerates. The fundamental reason behind the classification is the impact of macro factors. And the Micro factors could be policy announcements, demographic changes or reforms. In general, classified sectors or conglomerates have similar consequences.
On occasion, if the government of India decides to lower the excise duty (production tax) for the pharma sector. Then the cost of production for all pharmaceutical manufacturers is automatically reduced. Therefore, all companies within a conglomerate will be equally affected by a merger or an acquisition. Suppose investors want to take advantage of such announcements. They will first have to find out the names of different related companies listed on the exchange. Then screen good companies from the lot, and invest in them separately. Also, manage their investments in various companies individually.
In minor cases, we believe that the process for taking more extensive exposure to sectors or conglomerates should be easy, efficient and straightforward. For this reason, we have Trackers.
A tracker consists of all the essential stocks to represent the most influential companies of a conglomerate, or the total market cap of stores in the small case is more than 90% of a particular sector’s market cap. If the Tata Group has important announcements working in their favour, the House of Tata will go up, or if auto stocks go up, the Auto Tracker will also give positive returns.