Lupin hits new high

Since February 23, the stock rallied 15% compared with 1% decline in CNX Nifty and 9% rise in CNX Pharma index.

Shares of Lupin were trading higher by 2% at Rs 1,901, after hitting a record high of Rs 1,917 on the National Stock Exchange (NSE) in otherwise weak market.

Since February 23, the stock rallied 15% from Rs 1,648 after the company said it has received the final approval for its product, a generic version of Allergan Inc's Lumigan Ophthalmic Solution, from the US Food and Drug Administration (USFDA). The CNX Nifty declined 1%, while CNX Pharma index gained 9% during the same period.

Thus far in 2015, shares of pharmaceutical company zoomed 34% against less than 5% rise in the benchmark index.

Analyst at Kotak Securities recommends a ‘buy’ rating on the stock with target price of Rs 2,055.

“Lupin is awaiting approval for Nexium generic from USFDA and had indicated launching it in 4QFY15. Nexium is a US$2.7 billion opportunity in the US with only one generic player - Teva. We believe FDA approval of Nexium generic will be a key driver in the near-term for US sales and can add US$100 million or around 10% to LPC's US revenues,” Meeta Shetty analyst at Kotak Securities in report dated March 9, 2015.