All production and manufacturing activities are virtually at a halt now all over the world, with the ongoing Covid-19 pandemic lockdown. However, there is this industry whose production and manufacturing activities are getting ramped up because of the Corono virus epidemic. Can you guess this industry?.
It’s a logical obvious fact, that the pharmaceutical industry now would be manufacturing medications on really large scale catering to the requirement of treating the affected Corona patients. So, in this unfortunate Carona induced recessionary period, when no economic or business activity can happen with the lockdown, it’s the pharmaceutical companies who are able to engage in viable business activity!!
Indian Pharma Companies leading in the manufacture of in-demand medicines
It turns out that the Indian pharmaceutical companies would be making most business because medications right now that are prescribed for the treatment of Covid-19 are manufactured by them. This is because India has established enough capacity to manufacture hydroxychloroquine (HQC), a drug used to treat malaria and this drug is right now considered essential to treat Covid-19 disease, although there is no surety about this, as clinical trials have not yet established that this drug would effective in eradicating Covid-19 disease on human beings so this BBC article says.
India has edge in manufacturing of Covid-19 treatment medication
Even so, the Indian Council of Medical Research (ICMR) recommends this medicine for those dealing with Covid-19 patients or are exposed to possible Covid-19 infected individuals, as a preventive medication. The medicine is also used to treat Covid-19 affected patients according to this livemint article.
India’s been restricting easy purchase of hydroxychloroquine medicine
Since, HQC is considered important for treatment of Covid-19, India had banned it’s export on March 25th. India’s concerns were on ensuring enough stocks of HQC were available to care for its domestic Covid effected cases that are increasing day by day, (yesterday’s count of confirmed Corona virus infected people stood above 5000).
India in recent times has limited the general easy access of HQC to prevent hoarding of this vital drug so it’s available to patients who really need them, at a time when Covid-19 is getting increasingly widespread in the country.
India allows for export of hydroxychloroquin(HQC) to other Covid-19 affected countries.
However, something interesting took place, with the US president Donald Trump specifically pressuring Indian PM Narendra Modi, to allow for exports of paracetamol and hydroxychloroquin to the US or else India might face the wrath of USA’s retaliatory measures.
PM Modi, in return, abided and allowed for these medicines to be exported to neighbouring countries and other countries severely hit by the Corona epidemic, but it would be if there are more medicine stocks available after catering to their own Corona effected Citizens.
Reference article - : https://www.deccanchronicle.com/nation/current-affairs/070420/india-opens-up-drug-export-after-trump-cracks-the-whip.html?utm_source=latestPromotion&utm_medium=end&utm_campaign=latest
India seems confident in it’s ability to manufacture enough hydroxychloroquin medicines to cater to its people and also export them to other countries in need of these drugs.
China too involved in hydroxychloroquin manufacturing indirectly
Another interesting fact is that China supplies India with the active pharmaceutical ingredient (API) needed to manufacture hydroxychloroquin. There is no problem in procurement of API needed for creation of HCQ medicines.
Bullish outlook for certain Indian Pharma stocks even in a quashed economy
Therefore, one can expect share prices of top Indian pharmaceutical companies that manufacture these medicines to be performing well in the short term till Corona situation is sorted out.
Look at the recent price movements of certain Pharma Companies
Some of the Top Indian pharma companies involved in making HCQ API and formulations are -Ipca Laboratories, Zydus Cadila, Wallace Pharmaceuticals and Cipla.
It is interesting to note that the shares of these companies rose up on April 7-8 post India’s announcement that HCQ medicines would be allowed to be exported and was going down in March 25th period when India announced a ban on HCQ medicine exports.
Ipca Laboratories Price Movement chart >>
Zydus Cadila Price Movement chart >>
Cipla Price Movement chart >>