Another interesting observation -
Dependence on plain vanilla US generics ( even for larger players like - sun, cipla, dr reddy ) …… is falling with every subsequent qtr
Share of profits from branded mkts are increasing with every passing qtr
Bigger guys like - Sun, Cipla, Dr Reddy are sitting on cash like 5-6-7 k cr ( company to company ) and are now spending these on either niche / specialty or limited competition complex generics. Plus they r generating tons of Cash every year
Eg - Sun’s specialty portfolio is doing very well. With increased R&D dollars, it should only get better
The pain caused by heavy dependence on plain vanilla generics may not get repeated easily ( all companies seem to be aware of this and are acting accordingly )
May lead to a structural re-rating of the sector
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