Aurobindo Pharma hits new high, stock surges over 100% in three months

Since December 12, the stock surged 35% after the company received the USFDA nod to manufacture anti-depressant drug in the American market

Shares of Aurobindo Pharmaceuticals continues its upward march with the stock touching a new high on the Bombay Stock Exchange (BSE).

The stock is trading higher by over 5% to Rs 405, rallied over 100% in past three months from Rs 192 on September 23, after reporting a robust operating performance for the second quarter ended September 2013.

Since December 12, in last eight trading sessions, the pharmaceutical stock surged 35% from Rs 298 after the company  received the final approval from the U.S. health regulator to manufacture and market Duloxetine Hydrochloride Delayed-Release capsules, an anti-depressant drug, in the American market.

The market size of the product is estimated to be $5.4 billion for the twelve months ending September 2013, Aurobindo Pharma said in a regulatory filing.

Analyst at IndiaNivesh Research says “With the issues from USFDA getting resolved on both units VI & IV; we believe margins will come back to previous levels. Robust growth from USA (+53% y?o?y in USD term), higher contribution from formulation business, and better product mix will lead to substantial improvement in margins of the company.”