Pharma stocks got a new lease of life as coronavirus
pandemic got a tighter grip on the country in April, with the Nifty Pharma index, which surged 30 per cent during the month, posting its biggest monthly rally since January 2001. The S&P BSE Healthcare index rallied nearly 26 per cent in April 2020, posting its biggest monthly gain in 21 years. The last time the S&P BSE Healthcare index saw a similar rally was in March 1999 when it had surged 31.5 per cent in a month.
Investors flocked to pharma stocks on expectations of these companies aiding the development of vaccine to counter the pandemic and a rush to safer investing options in uncertain times.
Among individual stocks, Alembic Pharmaceuticals was up 4 per cent to Rs 775 in the intra-day trade today, after the company announced that the US Food and Drug Administration (USFDA) has classified the company’s general oral solid formulation facility located at Panelav as Voluntary Action Indicated (VAI).
The inspection at the said facility was conducted by USFDA from March 9, 2020 to March 13, 2020. VAI means USFDA accepted the Company’s response to its observations, the company said in the exchange filing.
Cadila Healthcare (Zydus Cadila) was up 3 per cent at Rs 334 after the company received tentative approval from the USFDA to market empagliflozin and metformin hydrochloride tablets, 5 mg/500 mg, 5 mg/1000 mg, 12.5 mg/500 mg, and 12.5 mg/1000 mg.
A combination of 2 drugs: empagliflozin and metformin, this medication is used with a proper diet and exercise programme to control high blood sugar in people with type 2 diabetes. It will be manufactured at the group’s formulations manufacturing facility at SEZ in Ahmedabad, the company said.