Shares of pharmaceutical companies continued their upward journey with Nifty Pharma
index quoting higher for 11 out of past 14 trading days on the National Stock Exchange (NSE).
Sun Pharmaceutical Industries, Dr Reddys Laboratories, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Abbott India, Merck, Sanofi India and GlaxoSmithKline Pharmaceuticals were among 11 stock that hit their respective 52-week highs on Monday.
Hikal, Poly Medicure, RPG Lifesciences, SMS Pharmaceuticals, Nectar Lifesciences and Marksans Pharma from the S&P BSE Healthcare index were up in the range of 4% to 12% on the BSE.
At 11:25 am; Nifty Pharma
index, the largest gainer among sectoral indices, was up 1.4% at 10,530 on the NSE. In comparison, the Nifty 50 index was up 0.15% at 11,697.
In past 14 trading days, the pharma index has outperformed the market by surging 15% as compared to a 2.3% rise in the benchmark index.
Sun Pharma hits a fresh 52-week high of Rs 669, up 2% on the NSE on reports that the US Food and Drug Administration (FDA) completed auditing the company’s Halol plant with on observations. In past three months, the stock rallied 39% as compared to 10% rise in the Nifty 50 index.
On June 12, 2018, Sun Pharma had received the Establishment Inspection Report (EIR) from the US FDA for the inspection conducted at its Halol facility (Gujarat, India) during the period February 12-23, 2018.
“The agency concluded that the inspection now closed and the issues contained in the Warning Letter issued in December 2015 have been addressed,” the company had said.
Dr Reddy’s Laboratories too hit a 52-week high of Rs 2,612, up 5%, extending its Friday’s 5% surge on the BSE.
The company on August 23 had received an EIR from the US health regulator for its Srikakulam facility in Andhra Pradesh. The Srikakulam unit manufactures active pharmaceutical ingredients (APIs). The EIR from the USFDA
indicates closure of the audit of the plant, Dr Reddy's Labs had said in a BSE filing.
In an earlier filing on June 2, 2018, the company had said that the audit of the Srikakulam plant (SEZ) by USFDA
had been completed with no observations.