The top gainers were Neuland Laboratories (up 20% to Rs 59.60), Lupin (up 15% to Rs 297.80), Kopran (up 12% to Rs 43.20), Torrent Pharma (up 8.6% to Rs 216), Alembic (up 9% to Rs 258), Natco Pharma (up 8.6% to Rs 62.95), IPCA Laboratories (up 7.4% to Rs 330.20), Glenmark Pharma (up 6% to Rs 278), Orchid Chemicals (up 6.7% to Rs 150), Morepen Laboratories (up 5% to Rs 14.65), Cadila Healthcare (up 5% to Rs 142.50), Unichem Laboratories (up 4.5% to Rs 200), Sun Pharma (up 3.5% to Rs 340), Shasun Chemicals (up 4% to Rs 195), GlaxoSmithKline Pharma (up 3.6% to Rs 355), Dr Reddy's Laboratories (up 3.3% to Rs 1,067) and Nicholas Piramal (up 3.4% to Rs 301).

Stocks of pharmaceutical companies have witnessed a sustained rise in the last few months, particularly of those companies which have large exports to the US markets.

At least three Indian companies, namely Glenmark Pharma, Orchid Chemicals and Lupin have, in the last few weeks, announced US initiatives including tie-ups for marketing.

Besides the thrust on exports, a host of developments including the dissipating fears over the implementation of value added tax (VAT), the attractive valuations of these scrips, a decent monsoon so far and, more recently, the revised US Food and Drug Administration rules announced by the George W. Bush administration have led to overall firmness in pharma stocks.

Recently, Glenmark Pharmaceuticals announced that its wholly-owned US subsidiary has entered into a marketing arrangement with the Philadelphia-based Lannett Company Inc. to market ANDAs (Abbreviated New Drug Applications) that Glenmark Pharmaceuticals USA would file over the next two years. It is expected to file 5 ANDAs over the next two years, of which, at least one will be filed by the end of the current fiscal.

Lupin, earlier this month, announced that it is preparing to launch a branded pharmaceutical product in the US market. The company is planning to launch Cefixime tablets and suspension under the Suprax brand. It would be selling this brand under an exclusive arrangement. The product will be launched after receiving the final approval from the US Food and Drug Administration (US FDA). The company has filed two ANDAs for Ceflxime in the first half of 2002-03.

Orchid recently entered into a pact with US-based Apotex Corporation for sale of its generic cephalosporin and other injectable products in America. Orchid will undertake development, manufacturing and supply of the sterile drugs, while Apotex will handle all sales and marketing efforts in the US.

Meanwhile, the new US FDA rules announced recently augur well for the Indian drug companies, since they limit a patent-holder's ability to delay the introduction of cheaper generic versions of drugs, according to pharma analysts. A host of drugs are going off patent over the next five years.

The litigation costs for local pharma companies will also come down. In addition, with the favourable approach adopted by US President George W. Bush towards outsourcing from India, the concerns that there could be IT-like curbs on the pharma sector seems to have diminished, according to analysts.

Two Indian pharma majors, Dr. Reddy's Laboratories and Ranbaxy, which are aggressively focussing on the US generics markets, would benefit from the new US FDA rules, analysts added.

A good monsoon also augurs well for pharma firms because rural purchasing power will get a boost. The demand for the anti-infectives segment has a strong linkage to rural purchasing power, analysts said.