Pharma shares under pressure; Aurobindo, Wockhardt, Hikal, Natco down 6%

Natco Pharma said that a US District Court has issued a decision in favour of Pharmacyclics (a subsidiary of AbbVie), the brand owner of Imbruvica in a PIV litigation involving the product..

Shares of pharmaceutical companies came under pressure in Friday's session, falling by up to 6 per cent on the BSE. 

Wockhardt, Aurobindo Pharma, Hikal and Natco Pharma were down 6 per cent each in intra-day trade today. Granules India, Strides Pharma Science, Unichem Laboratories, Morpen Laboratories, Lupin, Dr Lal PathLabs and Glenmark Pharmaceuticals were down between 3 per cent and 5 per cent on the BSE.

At 02:31 pm, the S&P BSE Healthcare index shed 1.8 per cent, as compared to a 0.28 per cent decline in the S&P BSE Sensex.

Among individual stocks, Natco Pharma tanked 6 per cent to Rs 911 in intra-day trade after the company announced that a US District Court has issued a decision in favour of Pharmacyclics (a subsidiary of AbbVie), the brand owner of Imbruvica in a PIV litigation involving the product.

Natco and its marketing partner in the US for the product, Alvogen Pine Brook LLC, USA, shall review the judgement and evaluate all options to appeal the judgement. We believe that we have a strong case and will continue to defend vigorously, the company said in a press release.

In the year 2018, Natco and Alvogen had filed an Abbreviated New Drug Application (ANDA) with PIV certification for the generic version of the product.

Shares of Aurobindo Pharma hit a fresh 52-week low of Rs 681, down 6 per cent on the BSE on the back of heavy volumes. The trading volumes on the counter rose nearly three-fold with a combined 7.28 million equity shares changing hands on the NSE and BSE. In the past one month, the stock has declined 30 per cent, as compared to a 6 per cent rally in the Sensex.

The company had reported a disappointing operational performance in the June 2021 quarter (Q1FY22) amid a decline across the US market and antiretroviral (ARVs). Separately, on August 12, 2021, Aurobindo Pharma said the company has entered into definitive agreements under which the company will subscribe to fresh equity shares in Cronus Pharma Specialities India Private Limited (Cronus) amounting to Rs 420 crore.

Cronus is a Hyderabad based generic veterinary pharmaceutical products company engaged in the development, manufacturing and sale of veterinary pharmaceutical products. Subsequent to this investment, the company will own 51 per cent of the equity share capital of Cronus, Aurobindo Pharma said.