We continue our positive outlook for the pharma sector due to expected improvement in performance in FY15. Our top picks for the pharma sector includes Lupin, Aurobindo Pharma (APL) and Pfizer. Lupin’s strong presence in the US and Japanese markets will generate good revenue growth. APL is likely to report strong growth in the US and European markets due to the acquisition of Actavis generic business. Pfizer is likely to benefit from the merger with Wyeth and field force rationalization. These companies are expected to give over 30% returns over CMP in one year
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