IPCA Laboratories share price surges as much as 12% to trade at Rs 1,615 per share on Monday morning after the drug maker informed that the US FDA has made an expedition for the company under the imports Alert.
IPCA Laboratories share price surges as much as 12 per cent to trade at Rs 1,615 per share on Monday morning after the drug maker informed the stock exchanges that the US Food and Drug Administration (US FDA) has made an expedition for the company under the Imports Alert. With this IPCA’s Active Pharmaceutical Ingredients (API) and finished products of Hydroxychloroquine Sulphate and Chloroquine Phosphate APls along with Hydroxychloroquine Sulphate Tablets will be shipped to the United States as the demand for the drug increases aided by the Coronavirus pandemic. “US FDA has also informed that their exception will be re-considered if the shortage implications change,” the drug-maker said.
The surge in IPCA Lab’s share price was short lived though as it tanked 10 per cent from the day’s high after trading resumed post the 45-minute trading halt on the stock exchanges. However, even the fall kept IPCA Labs among the best performing stocks on Dalal Street. “We also wish to bring to your notice several credible articles / reports / research papers claiming prophylactic as well as treatment potentials of Chloroquine Phosphate and Hydroxychloroquine Sulphate formulations in managing/treating Coronavirus Disease (Covid-19), though these drugs are not approved for treatment by any regulatory authority. Due to this, we are noticing an increase in the emergency demand and enquiries for the Chloroquine Phosphate and Hydroxychloroquine Sulphate APls and its formulations from several countries world over” IPCA Labs said in the regulatory filing.
Anti-malaria drug chloroquine is being tested as a possible treatment for the Coronavirus. “Even as the FDA is yet to approve these drugs for their use against Covid-19 and has stated that the exemption could be reconsidered depending on the evolving shortage situation, given Ipca’s leadership in anti-malarials in India & other markets (ex-US) and that the decline in antimalarials in general has been a minor drag on the company’s domestic growth, we view the development as a sentiment positive,” said JM Financial Services in a research note on Monday with ‘buy’ call on the IPCA Labs stock.
The US FDAis reportedly to start testing the Chloroquine against Coronavirus in clinical trials soon. Even the Chinese National Health Commission has recommended using Chloroquine on patients. “The recommendation was based on a study which reported that Covid-19 patients treated with Chloroquine Phosphate demonstrated clinical benefits versus the control group. A study conducted by researchers in France in 20 Covid-19 patients with the combination of Hydroxychloroquine and Azithromycin resulted in positive outcomes,” added the research note.
Domestic benchmark indices were deep in red on Monday even after a 45-minute trading halt was imposed on the bourses by the market regulator. S&P BSE Sensex and the NSE Nifty-50 both tanked 12 per cent.