Nifty Pharma index hits new record high; Laurus Labs, Glenmark Pharma up 3%

Shares of Glenmark Pharmaceuticals were up 3 per cent after the company received tentative USFDA approval for the generic version of Boehringer Ingelheims Praxada capsules in the US
Shares of pharmaceutical companies were in focus on Monday with Nifty Pharma index hitting a fresh record high of 12,836 on the National Stock Exchange (NSE) in an otherwise subdued market.

Cipla, Cadila Healthcare, Lupin, Sun Pharmaceutical Industries and Aurobindo Pharma from the Nifty Pharma index were up in the range of 1 per cent to 2 per cent on the NSE.

Meanwhile, Marksans Pharma, Suven Pharma, Novartis, Indoco Remedies, Glenmark Pharmaceuticals, Dr. Lal PathLabs, RPG Life Sciences, Strides Pharma Science and Laurus Labs from the S&P BSE Healthcare index were up between 2 per cent and 5 per cent.

In comparison, the benchmark indices, Nifty50 and S&P BSE Sensex were trading flat at 13,742 points and 46,999 points, respectively, at 10:02 am.

Among the individual stocks, Laurus Labs hit a new high of Rs 366, up 3 per cent. It has gained 12 per cent in the past four trading days. Meanwhile, in the last one month, the stock has outperformed the market with a 27-per cent rally after the company acquired 73 per cent stake in Richcore Lifesciences (Richcore) for a cash consideration of Rs 250 crore. The acquisition is a step towards building a vertically integrated biotech segment and adds a new lever to growth.

Motilal Oswal Financial Services, in company update, said that it remains positive on Laurus Lab on the back of superior execution in the Anti-retroviral (ARV) segment, strong chemistry skill set driving the Contract Development and Manufacturing Organization (CDMO) business and the addition of a new leg to the CDMO business, which vastly expands its total addressable market, the addition of new molecules in the other Active Pharmaceutical Ingredients (API) segment, and cost efficiency aiding profitability.

Shares of Glenmark Pharmaceuticals, on the other hand, were up 3 per cent at Rs 532 after the company received tentative USFDA approval for the generic version of Boehringer Ingelheims Praxada (Dabigatran Etexilate) capsules in the US. The anticoagulant drug, used to treat and prevent blood clots to prevent stroke, had annual sales of $551 million as per IQVIA MAT October 2020.

Shares of Lupin also advanced 2 per cent at Rs 991 after the company received USFDA approval for the generic version of Daiichi Sankyo Welchol (Colesevelam Hydrochloride) tablets, 625 mg in the US. The drug, indicated for the reduction of low-density lipoprotein cholesterol (LDL-C), had annual US sales of US$159 million as per IQVIA MAT September 2020.

Cipla was up 2 per cent at Rs 810, gaining 7 per cent in the past six trading days following the company's gRevlimid settlement with innovator Bristol Meyers Squibb (Celgene).

Under the settlement agreement, Cipla will be able to sell gRevlimid in a volume-limited manner starting on a confidential date that is some time after March 2022. After the entry till January 31, 2026, Cipla's gRevlimid volumes cannot exceed the agreed-upon amount.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel