Gland Pharma advances 9% on heavy volumes; stock hits 9-week high

Shares of Gland Pharma moved higher by 9 per cent to its nine-week high of Rs 3,556 on the BSE in Thursday's intra-day trade amid heavy volumes. In the past two trading days, it has rallied 11 per cent as compared to 2 per cent gain in the S&P BSE Sensex.

At 09:15 am,  around 5.42 million equity shares, representing 3.3 per cent of total equity of Gland Pharma, changed hands on the BSE, exchange data shows. The names of the buyers and sellers, however, could not be ascertained immediately.

The stock is at its highest level since February 14, 2022. It had hit a record high of Rs 4,350 on August 12, 2021. At 11:40 AM; it was ruling 8 per cent higher at Rs 3,527, as against 1.2 per cent gain in the benchmark index.

According to Motilal Oswal Financial Services, the prospects of Gland Pharma remain positive given its niche product pipeline in injectables, volume gains in existing products, wider market operations for its portfolio, a strong cash cushion for inorganic growth, and consistent compliance.

Among Indian players present in the US, Gland appears to be the largest beneficiary from drugs under shortages due to consistent compliance and manufacturing capacity/capabilities. The company has 11 injectable products in the USFDA shortage list, which have combined sales of ~$400 million over the past 12-months.

"The overall number of drugs under shortage in the US has declined to a 15-year low at present. However, the number of injectables facing a shortage is at its 20-year average, but is at a record high as a percentage of total drug shortages," the brokerage firm said in a stock update. It has a ‘buy’ rating and a target price of Rs 4,040 per share.