Midcap Indian pharma stocks get a thumbs up

An Indian analyst sees good days ahead for midcap India pharmaceutical companies, and mentioned Granules India, Sharon Biotech, Shilpa Medicare and Suven Life Sciences among them.

In an interview, Prakash Diwan, the head of Altamount Capital Management, told the Economic Times those small companies have just begun entering the global market in a bigger way, but advised caution in rushing to their sides.

The key for midsize India drugmakers pushing into larger markets is for them to have a safe drug to sell, he said, and noted the recent troubles of giants such as Dr. Reddy's Laboratories, Ranbaxy Laboratories and Sun Pharmaceuticals.

Diwan said he had barely heard of some of the mid-caps before they became midsize, and now they are going up against the competition of multinational companies.

For now, he said, he is watching Ipca Laboratories as it deals with problems uncovered in a recent U.S. FDA inspection. He said Ipca was "on the cusp of a turnaround."

- here's the story from the Economic Times