The Hyderabad-based drug firm informed exchanges that it has received an establishment inspection report (EIR) from the US Food and Drug Administration (US FDA), for formulation of Srikakulam Plant (SEZ) unit II in Andhra Pradesh.
Share prices of pharmaceutical companies soared on Thursday as some companies announced they had received regulatory approvals for their products. The S&P BSE Healthcare index closed the session 2.74% higher at 14,154.16 points and Nifty Pharma ended 3.33% higher at 9,629.75 points. Dr Reddy’s Laboratories closed the session 7.47% higher at Rs 2,486.45 per equity share. The Hyderabad-based drug firm informed exchanges that it has received an establishment inspection report (EIR) from the US Food and Drug Administration (US FDA), for formulation of Srikakulam Plant (SEZ) unit II in Andhra Pradesh. Additionally, Morgan Stanley (MS) has upgraded its rating to overweight from equal weight. MS has revised its target price on the stock to Rs 3,133 from the earlier target of Rs 2,798, as it expects operating leverage to drive earnings recovery going forward.
Orchid Pharma and Divi’s Laboratories were among the biggest gainers in the index. On BSE, shares of Divi’s Laboratories and Orchid Pharma surged 5.11% and 19.83% respectively. Cipla, Cadila Healthcare, Glenmark Pharmaceuticals, Lupin and Sun Pharmaceuticals were other gainers. The price of these stocks rose between 0.5% and 8%. Divi’s Laboratories said that its all previous observations have been confirmed and resolved. Like Dr Reddy’s laboratories, Orchid Pharma, in a notification, informed that it has received an EIR from the US FDA on successful inspection of the API manufacturing facility at Kanchipuram district in Tamil Nadu.
Zydus Cadila received final approval from the US FDA for Itraconazole capsules that are used to treat fungal infections. In addition, Glenmark Pharmaceuticals received ANDA approval for Nitroglycerin Sublingual Tablets USP, 0.3 mg, 0.4 mg, and 0.6 mg. Axis Capital, in a research report, said it expects recovery for most Indian Pharma companies by September quarter of financial year 2018 (Q2FY18). However, in July analysts have said that India Pharma could report weak quarter results led by slowdown in India as a result of channel de-stocking ahead of GST (Goods & Services Tax) rollout, dollar depreciation against rupee, lack of big-ticket launches and continuing base erosion in the US.