Select pharma shares rally; Neuland Laboratories hits lifetime high

Neuland Lab, Wockhardt, Suven Life Sciences, Unichem Lab and Indoco Remedies gained between 3%-17% on the BSE.

Shares of select pharmaceutical companies have rallied by up to 17% on the bourses in otherwise weak market.

Neuland Laboratories, Wockhardt, Suven Life Sciences, Unichem Laboratories and Indoco Remedies have rallied between 3%-17% on the BSE. At 12:39 PM, the S&P BSE Sensex was down 0.76% at 25,523 points.

Wockhardt has moved higher by 9% to Rs 1,323, extending its previous 2% gain on the BSE, after drug maker said it has received approval for Memantine hydrochloride tablets from United States Food and Drug Administration (USFDA).

Suven Life Sciences rallied 7% to Rs 221 after the company secured five product patents in China, Israel, Mexico, Singapore and Sri Lanka ) corresponding to their New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases.

Neuland Laboratories has soared 17% to Rs 716, also its lifetime high on the BSE. The stock of pharmaceutical firm rallied 39% from Rs 506 on August 13, post June quarter results. The S&P BSE Sensex was down 7.4% during the same period.

The company had reported more than doubled standalone net profit at Rs 7.3 crore for the quarter ended June 30, 2015 (Q1FY16), on the back of strong operational performance. It had a profit of Rs 3 crore in the same quarter a year ago.

Earnings before interest, tax, depreciation and amortization (EBITDA) margins improved 360 basis points Y-o-Y to 17.6% in Q1FY16 as against 14.0% in Q1FY15.