Laurus Labs and its partner Rising Pharmaceuticals manufacture Hydroxychloroquine Sulphate, USP Tablets under an FDA approved drug application. Rising Pharmaceuticals is the exclusive distributor of the product in the US.
Hydroxychloroquine (HCQ) is a medication used for the prevention and treatment of certain types of malaria, as well as rheumatoid arthritis, lupus, and porphyria cutanea tarda.
HCQ prices have jumped anywhere between around 3.5 times in the US as the market continues to be plagued by shortage (declared since March 31) after drug was touted to be a cure for COVID-19.
“Laurus Labs is fully integrated in APIs and only imports the key starting materials (KSM) from China; it sees the opportunity lasting for about another 6 months with a meaningful contribution to sales,” analysts at YES Securities said in pharma sector update.
Laurus believes HCQs could evolve in to another Valsartan-like opportunity even as we note that sartans has emerged as a much more durable opportunity than earlier envisaged. Once Indian players start supplies, prices will decline through opportunity could still remain above the pre-shortage levels, it added.
At 09:55 am, Laurus Labs was trading 6 per cent higher at Rs 481 on the BSE, against 0.23 per cent rise in the S&P BSE Sensex. A combined 600,000 shares changed hands on the counter on the NSE and BSE so far.