Shares of the Natco Pharma surged 20% and got locked in the upper circuit on Wednesday after its US marketing partner received FDA approval for Natco Pharma's generic Glatiramer Acetate.
Shares of the Natco Pharma surged 20% and got locked in the upper circuit on Wednesday after its US marketing partner received FDA approval for Natco Pharma’s generic Glatiramer Acetate. This was the biggest intraday percentage gain in the stock since 29 July 2013. The stock of Natco Pharma advanced as much as 20% to hit the day’s high and upper circuit limit of Rs 954.35 on BSE today. The US Food and Drug Administration (FDA) approved its marketing partner Mylan for Natco Pharma’s generic of multiple sclerosis treatment Glatiramer Acetate, for the 20 mg/mL and 40 mg/mL versions.
These generics are indicated for the treatment of patients with relapsing forms of multiple sclerosis (MS), a chronic inflammatory disease of the central nervous system. The launch plans for both products will be communicated shortly after concurring with partner Mylan, Natco Pharma said in an exchange filing. Natco Pharma could be the only generic in the market for 40 mg version for the next 6 months, Reuters said citing a Jefferies note. Natco Pharma’s strong R&D team, complex speciality focus pipeline and lack of significant FDA issues make it one of the best placed Indian pharma companies, Reuters report added.
About the product and its application
Copaxone is the most prescribed MS treatment for relapsing forms of MS in the United States with brand sales for the 20 mg/mL dose of approximately $700 million and for the 40 mg/mL dose of approximately $3.64 billion for the 12 months ending 31 July 2017, according to Quintiles IMS. Approximately 4,00,000 individuals in the US have MS and relapsing MS accounts for 85% of initial MS diagnosis.
Indian stock markets in early trade
Sensex and Nifty opened marginally higher on Wednesday, later extended the morning gains in a muted trade activity as the attention of market participants shifts to the outcome of the Reserve Bank of India’s bi-monthly monetary policy. BSE Sensex gained 25 points to open at 31,522.17 points and NSE Nifty too added 25 points to open at 9,884.35 points. Meanwhile, Japanese shares jumped in the early trade on Wednesday led by auto stocks as US demand for cars rose following damage from recent hurricanes. The benchmark Sensex shuttled in the range of 31,457.78-31,675.41 points till the early morning trade while the broader Nifty 50 rose 56 points to hit 9,916.05 points.