bearish
Aurobindo Pharma (ARBP IN): Pain Continues in the U.S. Formulation Business
315 Views03 Mar 2022 23:40
SUMMARY
- Aurobindo Pharma (ARBP IN) shares have corrected more than 40% from peak and are trading at discount to peers. The company’s U.S. business is under pressure, resulting in deteriorating profitability.
- We are not seeing any immediate respite in the U.S. formulation business. Hence, investors can avoid Aurobindo Pharma shares.
- However, value unlocking through stake sale in injectable business can be a near-term catalyst, resulting in relief rally in the stock.
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Tina Banerjee
Global Healthcare Analyst
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