Paper Details

No one has thought that the year 2020 is going to bring havoc onto this world in the form of COVID-19. World’s economy has crumbled in the face of this disease, and its impact can be seen till this day. But how the Healthcare sector and in that particular Pharmaceutical sector reacted to this change is a good question to ask. The purpose of this study is to find how the pandemic has affected the growth of Pharmaceutical companies by using various methods and tools. Three Pharmaceutical companies are selected for this study which are Cipla Ltd., Lupin Ltd. and Divis Laboratories Ltd. Daily VWAP prices of these companies are collected for a period of four years or 989 trading days, divided into pre-event periods of 3 years starting from 24 May 2017 to 23 May 2020 and one year of post-event period starting from 24 May 2020 to 23 May 2021. Fundamental analysis is also done with the help of annual reports of selected companies to know the growth in the intrinsic value and values are taken at the end of every financial year i.e. 3 March for the same reason. This study suggests that all selected companies have seen above average annual growth to varying degrees, particularly outperforming the 2019-2020 financial results by a long shot. This is a clear indication that the pandemic has fueled the growth of Pharmaceutical companies and this can be applied to the Pharmaceutical sector in general although it is not particularly studied in this paper.