Shares of the Indian drugmaker, Aurobindo Pharma rose as much as 8% today after getting US FDA approval for its chronic kidney disease drug. The stock jumped 8.22% to hit an eight month high of Rs 794.7 on NSE. The Nifty Pharma index rose as much as 1.8% to its highest since May 19. The index is on track to post sixth straight session of gains.
More than 7.8 million shares of Aurobindo Pharma were traded, compared with the 30-day average of 3.4 million. Analysts say Pharma stocks like Aurobindo, Cadila and Lupin Ltd are riding on the optimism of getting more approvals in the US, Reuters reported. As of Tuesday’s close, Aurobindo Pharma shares had gained 9.7% this year, while Cadila shares were up 47.1%.
Aurobindo Pharma also said that the product will be launched immediately. The drug will be used for the control of serum phosphorus in patients with chronic kidney disease on dialysis. Meanwhile, drug major Glenmark Pharmaceuticals today said it has entered into an agreement with Cyndea Pharma for developing generic soft-gelatin capsule formulations of certain pharmaceutical products.
Shares of other drugmakers also rose with Cadila Healthcare up 3.13% at Rs 54.9, Divi’s Laboratory up 3.2% at 759, Lupin up 1.82% at Rs 1,177.85, Sun Pharma up 1.81% at Rs 588.75, Dr Reddy’s Laboratories up 1.73% at Rs 2,766, Cipla up 1.73% at Rs 569.45 and Glenmark Pharmaceuticals up 2.39% at Rs 708.