Lupin records sharpest single day gain in three months

The stock ended higher by 4.4% to Rs 1,543 on the BSE, recorded its sharpest single day gain since March 30, 2016.

Lupin ended higher by 4.4% to Rs 1,543 on the BSE, recorded its sharpest single day rally in past three months. The stock gained nearly 5% to Rs 1,549 during intra-day trade on Tuesday.

Earlier, on March 30, 2016, the rallied 6% during intra-day trade finally ended 5% higher on the BSE.

In past one-week, the stock outperformed the market by gaining 6% after Lupin announced that it has received final approval from the US health regulator for its generic Amabelz tablets in the American market. The S&P BSE Sensex was down 1% during the same period.

The company’s tablets are generic version of Amneal Pharmaceuticals Activella tablets in the same strengths.

As per IMS MAT March 2016, Activella had US sales of USD 95.6 million, Lupin said. The tablets are used for treatment of moderate to severe vasomotor symptoms due to menopause and prevention of post-menopausal osteoporosis.

According to Daljeet S. Kohli, Head of Research, IndiaNivesh Securities after a few successive issues with USFDA at its various manufacturing sites, Lupin was eagerly waiting to get some positive news from USFDA side.

This approval shall provide that breather. Size of the approved product is less important at this time. In our opinion markets may take this approval as sentiment positive, the brokerage firm said in a report.

Meanwhile, the promoters of Lupin bought 759,351 equity shares of the company worth of Rs 110 crore from the open market thus far in June 2016.

The company’s three promoter group companies Lupin Holdings Private Limited, Rahas Investments Private Limited and Zyma Laboratories Limited have increased their holdings in the company via open market purchases.