New health laws ‘may hit Adcock’
Share price has gone up by 22% since the start of 2017, but there was a drop of 1.5% last week, breaking two consecutive weeks of gains
Adcock Ingram’s share price has extended its growth streak outperforming the market in 2017. But an analyst has warned that the latest health regulations could put a damper on the firm. The JSE listed pharmaceutical company manufactures and markets healthcare products to both the private and public sectors. On Tuesday, the share was up 0.63%, to R59.12 from a previous close of R58.75. The share price has increased since the company announced its first cash surplus since 2011 in February. The firm raised more than R300m after selling its Indian sales and marketing business and a majority stake in the Ghanaian enterprise. Gryphon Asset Management portfolio manager Casparus Treurnicht said since the lows of January 2016, Adcock outperformed the market by 44% when it rose from R39 to current levels of R59. "Also, compared with Aspen, the share performed even better for an outperformance of 110% since the beginning of 2015." Rival Aspen was up 1.89% at R290.50 at the close of the JSE on ...