Potential future growth in pharma space and in the generic space, says Deepak Shenoy, Capital Mind

ET Now: Are you interested in any of the pharma related stories?

Deepak Shenoy: I like Strides Arcolab which is one war pick, we have been long it for a while. The idea here is there were two sections of the story. They sold a significant amount of its business to Mylan.

So, what has happened with that is there are about $215 million due that is based on FDI approval of one of the injectables plants that is in Bangalore. In Mylan’s annual report or in the press conference that they had last month, they announced that three of the four inspections for the injectables plant of which Strides is sold have been done. There is only one pending and they are sure they are going to get it.

We are likely to see that coming in. That is about Rs 200 per share. Strides trades about odd Rs 600, of course it shot up quite a bit and some of it is on the back of FDA approvals for one of a new drug that it is starting to manufacture and also they had another oral drugs plant in Bangalore that got FDA approval. So based on all of this and the fact that there is potential future growth in this space and in the generic space, I like that stock.

So, of course, pharma being a defensive has gone up quite a bit in the recent past but of this space, we like Strides the most.