Divis is clearly facing headwinds on the generic products and the drop in demand from the Custom synthesis basis. They are not able to replace the Molnupiravir sales and margins in any good way till now and the effect is showing.
While I dont track them closely for deeper comment, the broad comment would be that Generics will never replace CSM as a sustainable and highly profitable business. Generics would have far higher variability and therefore all API companies become trading opportunities at best. Also in pharma , number of blockbuster new products (from volume perspective) is reducing in synthetic chemistry areas so that would be another headwind for them. The turning point for them will come only when they get a big CSM project or deals , moving forward. Otherwise it will also become a trading play.
Regards/Nikhil
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