Indoco Remedies rallies 9% after launching Covid treatment drug

Fevindo-400 will be made available at all government approved COVID care centres and selected medical practitioners across the country

Shares of Indoco Remedies surged 9 per cent to Rs 284 on the BSE on Monday after the pharmaceutical company announced the launch of Fevindo (Favipiravir) 400 mg tablets in India.

Fevindo-400 (Favipiravir) is an antiviral drug, effective against the RNA‐based influenza virus. The drug has been approved by DCGI in the treatment of Covid-19. The drug reduces pill burden by 50 per cent and ensures convenient dosing and better patient compliance, Indoco Remedies said in press release on Saturday.

Fevindo-400 will be made available at all government approved Covid-19 care centres and selected medical practitioners across the country. Indoco has set up dedicated helplines to ensure accelerated access to Fevindo 400.

In addition to Fevindo, Indoco has two more new products for launch in Covid Care range, i.e., Povidone Iodine Gargle and Immunity booster chewable tablets with Zinc, Vitamin C and Vitamin D.

“After going through rough patches in FY18-19, where the company faced headwinds on the domestic front (structural issues) and exports front (regulatory setbacks), the situation is returning to normalcy,” analysts at ICICI Securities said in a June quarter result update.

While FY21 growth in the domestic market is likely to be subdued on account of Covid-19, with easing logistical challenges and removal of ban on Paracetamol, good traction on the exports front is expected to continue with regulatory overhangs (except warning letter to Goa I). Normalisation of exports dispatches is likely to improve operating leverage as well, the brokerage firm said.

At 09:21 am, the stock was trading 7 per cent higher at Rs 278 on the BSE, as compared to 0.66 per cent rise in the S&P BSE Sensex. A combined around 95,000 equity shares had changed hands on the counter on the NSE and BSE, so far.