Cipla shares gain over 2% despite Monday market mayhem

Cipla shares were the only ones trading in green in the Nifty50 pack, up 2.46%. At 1:20 pm, Cipla was quoting at Rs 881.35, up Rs 21.25, or 2.46 percent, on the NSE

Cipla
Cipla shares were the only ones trading in green in the Nifty50 pack, up 2.46%

Amid bloodbath on Dalal Street which wiped out Rs 9.21 lakh crore of equity investors’ wealth, Pharma major Cipla share price rose over 2 intraday to Rs 883.90. The benchmark indices have been falling due to heavy selling in global markets on account of uncontrollable Omicron outbreak. While S&P BSE Sensex tanked over 1,800 points to sit below 55,500, NSE Nifty 50 dived 550 points to give up 16,500. However, Cipla shares were the only ones trading in green in the Nifty50 pack, up 2.46%. At 1:20 pm, Cipla was quoting at Rs 881.35, up Rs 21.25, or 2.46 percent, on the NSE. The share price rise comes after Cipla’s Lanreotide injection got the green light from the US drug watchdog.

“Cipla and its subsidiary Cipla USA, Inc have received the final approval for its Lanreotide injection from the United States Food and Drug Administration (USFDA),” said the company. The FDA approval was based on a New Drug Application (NDA) submitted under the 505(b)(2) filing pathway. Lanreotide injection is indicated for the treatment of patients with acromegaly and gastroenteropancreatic neuroendocrine tumors (GEP-NETs), it added. It is supplied in 60 mg/0.2 ml, 90 mg/0.3 ml, and 120 mg/0.5 ml single-dose pre-filled syringes, according to company’s regulatory filing.

Umang Vohra, MD and Global CEO, Cipla said, “We are pleased to receive the final approval for Lanreotide injection from the USFDA. Enabling access to high-quality treatments is core to our purpose of ‘Caring for Life’. This approval is a significant step for our US business and is in line with our aspiration to continue growth in our complex product pipeline and address unmet patient needs.”

The active ingredient’s route of administration and strengths are the same as Somatuline Depot, from Ipsen Biopharmaceuticals Inc. According to Iqvia, Somatuline Depot had sales of approximately $867 million for the 12-month period ending October 2021. Foreign research firm Nomura has kept a ‘buy’ call on the Cipla stock with a target at Rs 1,051 per share. Nomura expects Lanreotide Depot Injection to be launched soon. “The approval is a positive surprise and is not factored into our earnings estimate,” it said.

Cipla share touched a 52-week high of Rs 1,005 on September 29 this year, and a 52-week low of Rs 738.25 on March 19, 2021. Cipla is ranked the 3rd largest in pharma in India, 3rd largest in the pharma private market in South Africa, and is among the most dispensed generic players in the US.

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