Cadila Healthcare soars 31% in 2 days on USFDA nod for Perphenazine tablets

Zydus Cadila has received final approval from the United States Food and Drug Administration to market Perphenazine tablets USP, 2 mg, 4 mg, 8 mg and 16 mg

Shares of Cadila Healthcare  (Zydus Cadila) surged 17 per cent to Rs 367 on the BSE on Wednesday in intra-day trade. The company today said that it has initiated an accelerated research programme with multiple teams in India and Europe developing a vaccine for the novel coronavirus, 2019-nCoV (COVID-19) based on two approaches.

The company’s robust manufacturing facilities for producing recombinant antigens and measles containing vaccines would enable rapid ramping up of the production for both vaccine candidates, once the proof-of-concept is established, the company said on clarification on news report, COVID 19 - Cadila Healthcare claims to make coronavirus medicine.

The stock of pharma company has rallied 33 per cent in the past two trading days after the company received final approval from the US health regulator to market Perphenazine tablets. The pharmaceutical company's stock has now surpassed its previous 52-week high of Rs 349, touched on April 10, 2019.

Cadila Healthcare, on Tuesday, said that its has received final approval from the United States Food and Drug Administration (USFDA) to market Perphenazine tablets USP, 2 mg, 4 mg, 8 mg and 16 mg.

This medication is indicated for the treatment of schizophrenia and for the control of severe nausea and vomiting in adults. The drug will be manufactured at the group’s formulation manufacturing facility at Baddi, the company said in a press release.

The group now has 284 approvals and has so far filed over 386 abbreviated new drug application (ANDAs) since the commencement of the filing process in FY 2003-04, it said.

Analysts at Motilal Oswal Securities are positive on Cadila Healthcare on the back of robust ANDA pipeline including complex products like transdermals, and its changed strategy, which is delivering steady pick-up in domestic formulation growth.

“We expect earnings to form a trough in FY20 and revive over the next two years, led by 9 per cent sales CAGR in domestic formulation, incremental business from new launches and better traction in existing product, and improving profitability of consumer wellness segment,” the brokerage firm had said in Q3FY20 results update.

At 03:09 pm, the stock was trading 12 per cent higher at Rs 349 on the BSE, as compared to 0.61 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped an over 10-fold with a combined 35 million shares changing hands on the NSE and BSE so far.