Pharma index hits new high

Cadila Healthcare, Glenmark Pharm, Dr Reddy's Lab, Sun Pharma and Aurobindo up 1-6%, hits new high today.

Shares of pharmaceutical companies are on a roll with the National Stock Exchange (NSE) CNX Pharma and the Bombay Stock Exchange (BSE) S&P BSE Healthcare index hit their respective record highs today.

A strong September quarter earnings and positive corporate announcements led rally in pharmaceutical shares.

Cadila Healthcare, Glenmark Pharmaceuticals, Dr Reddy’s Laboratories, Aurobindo Pharma and Sun Pharmaceutical Industries are up between 1-6%, touched new high on the bourses.

At 1300 hours, the NSE CNX Pharma index up nearly 2% at 11,237 points compared to 0.25% decline in the benchmark CNX Nifty. The pharma index touched a record high of 11,242 during intra-day trade today.

The S&P BSE Healthcare index too, up 1.8% at 14,820 after hitting lifetime high of 14,832.

Among the individual stocks, Cadila Healthcare surged 7% to Rs 1,506 on reporting a healthy 52% rise in its consolidated net profit at Rs 278 crore for the quarter ended September 30 on the back of robust sales. The pharmaceutical company had profit of Rs 183 crore in the corresponding period of the previous fiscal.

Aurobindo Pharma rallied 4% at Rs 1,037 after reporting a robust 58% year-on-year jump in consolidated net profit at Rs 372 crore for the second quarter ended September, mainly on account of overall growth led by US Generics.

Glenmark Pharmaceuticals soared 5% to Rs 804, after the company said its USA subsidiary Glenmark Generics received US health regulator's nod to market generic version of AstraZeneca's Prilosec, a drug used for treatment of ulcer, in the US market.

Glenmark Generics Inc  has been granted the final abbreviated new drug approval (ANDA) from the United States Food and Drug Administration (USFDA) for Omeprazole Delayed Release Capsules, their generic version of Prilosec by AstraZeneca, a company statement said.

Dr Reddy’s Laboratories up 4.4% to Rs 3,396 on reports that the USFDA has granted final approval to drug maker and US firm Endo International Plc to make cheaper copies of Roche Holding AG's antiviral Valcyte.

The move comes after Ranbaxy Laboratories Ltd said on Thursday that FDA had stripped the company of its tentative approval to launch the first copy of the drug due to quality control issues at its manufacturing plants, the Reuters report suggests.