Cadila Healthcare rises 4% on launch of pressurized Metered Dose Inhaler

Shares of Cadila Healthcare rose 4 per cent to hit a 52-week high of Rs 428 on the BSE on Thursday after the company launched India’s first pressurized Metered Dose Inhaler (pMDI) for patients suffering from chronic obstructive pulmonary disease. The pharmaceutical company's stock surpassed its previous high of Rs 423.50, touched on October 6, 2020.

Zydus Cadila announced that it is launching Forglyn pMDI, India’s first pressurized Metered Dose Inhaler (pMDI) with a combination of Long Acting Muscarinic Antagonist (LAMA) and Long Acting Beta Agonist (LABA) for patients suffering from Chronic Obstructive Pulmonary Disease (COPD) in India.

Forglyn pMDI is priced at Rs 495 per pack and has been developed in-house using Zydus’ innovations in formulation technology. The administration of the two drugs Formoterol fumarate (LABA) + Glycopyrrolate (LAMA) in a single inhalation will improve outcomes due to the desired synergistic effect of the two drugs and a better adherence to the treatment, the company said in a press release.

In the past month, the stock has outperformed the market by gaining 17 per cent, as compared to 5 per cent rise in the S&P BSE Sensex.

Cadila Healthcare’s turnover is expected to sustain 8-9 per cent annual growth over the medium term, led by diversified revenue streams from the US, domestic, emerging markets and consumer wellness division. The contribution from acquired portfolio under the wellness segment is expected to be marginally lower than earlier envisaged on account of sales impact due to Covid-19; however, the segment is expected to ramp up over the medium term, CRISIL said in the company’s rating rationale report, on September 18, 2020.

The company's US segment (accounting for 43 per cent of revenue) degrew by 6 per cent in fiscal 2020 largely due to higher base in 2019 because of exclusivity sales. However, the segment is expected to grow 6-7 per cent over the medium term, driven by healthy product pipeline and regular launches.

Growth in the US segment may moderate because of warning letter issued in October 2019 on the Moraiya plant (Ahmedabad), which accounts for 35 per cent of the US revenue. Growth in the domestic segment (accounting for 27 per cent of revenue) is expected to moderate in fiscal 2021, given lower prescription-based sales and field visits due to the lockdown, the rating agency said.