Nomura believes the price cut of the next drug batch in NDRL could be after Chinese New Year, based on the findings of its latest site visits to five pharmaceutical and medical device companies in China. The research house beleived this has been one of the major drivers of the sector’s correction. It said the correction is overdone for some quality stocks, but Nomura expects the sector to remain volatile in view of more policy overhangs in 1Q2010. Nomura thinks mid-2011 offers a good bottom-fishing opportunity, while the current sector’s value should be attractive for long-term investors.