Natco Pharma share price hits 20% upper circuit, stock at new record high on starting trials for COVID drug

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Updated: May 24, 2021 1:07 PM

Natco Pharma share price hits 20 per cent upper circuit at Rs 1,188.95 apiece, also its all-time high, in intraday on BSE, after the company initiated phase III clinical trial to evaluate the efficacy and safety of Molnupiravir capsules in mild COVID-19 patients.

drugs for mild covid 19Bamlanivimab and etesevimab combination has been authorised under Emergency Use Authorisation in the US and select EU countries for the treatment of the disease, the statement said. (Representational image)

Natco Pharma share price hits 20 per cent upper circuit at Rs 1,188.95 apiece, also its all-time high, in intraday on BSE, after the company initiated phase III clinical trial to evaluate the efficacy and safety of Molnupiravir capsules in mild COVID-19 patients in India. Natco’s clinical trial has been planned in 32 hospitals across India. Natco Pharma stock price has surpassed its previous high of Rs 998 per share, touched in the previous session. Technically, the stock looks overbought and a correction looks likely, said an analyst. “Long-term investors should book some profits at current levels and look to buy near 920- 940 levels for better returns in the future,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.

Pre-clinical data have shown that Molnupiravir has broad anti-influenza activity, including highly potent inhibition of SARS-CoV-2 replication. Patients treated with Molnupiravir achieved response within 5 days of therapy indicating that the duration of treatment with Molnupiravir is short, with the additional advantage of being an oral therapy. In traded volume terms, 3.27 lakh Natco Pharma shares have traded on BSE so far in intraday, while a total of 62.19 crore shares have exchanged hands on NSE.

After the Drug Controller General of India (DCGI) permitted Natco Pharma to commence manufacturing of the anti fungal drug, namely, Amphotericin B, liposomal injection, which is crucial in the treatment of mucormycosis, often known as ‘Black Fungus,’ the stock hit 20 per cernt upper circuit. Further, the US Food and Drug Administration (US FDA) has given final clearance to the company for two new medicine applications, one of which is an anti-cancer drug. “We believe both these recent developments are long-term positive for the company, helping the stock to attract investment,” Ashis Biswas at CapitalVia Global Research, told Financial Express Online.

On Monday, Natco Pharma announced that it has received USFDA approval for Everolimus tablets in US markets. Natco’s partner BPI plans to launch 0.25 mg, 0.5 mg and 0.75 mg strengths of the product shortly. “The strengths of Everolimus are indicated in the Prophylaxis of organ rejection in kidney transplantation and liver transplantation,” the company said. In another release, Natco Pharma has received final approval from the US Food and Drug Administration (US FDA) for abbreviated new drug applications (ANDA) for Lenalidomide Capsules. The company along with its marketing partner (Arrow International Limited) had settled litigation with Celgene. NATCO and Arrow shall launch the product on agreed-upon launch dates in the future. In the afternoon deals, Natco Pharma pared some of its gains to trade 9.37 per cent higher at Rs 1,083.65 apiece.

(The stock recommendations in this story are by the respective research and brokerage firm. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)

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