 "USFDA boost for pharma shares; Strides, Alembic up over 7% in a week")
Pharmaceutical shares are in focus with the Nifty Pharma index set to post its biggest weekly gain in past six months after US drug regulator successfully inspected manufacturing facilities of three pharma companies.
Strides Shasun, Alembic Pharmaceuticals and JB Chemicals & Pharmaceuticals have announced the successful completion of the United States Food and Drug Administration (USFDA) inspection of their manufacturing facilities.
Besides these three stocks, Dr Reddy’s Laboratories, Lupin, Cipla, Marksans Pharma, Suven Life Sciences, Sanofi India, Aurobindo Pharma and JB Chemicals, Torrent Pharmaceuticals are among 21 pharma stocks from Nifty 500 index, have rallied more than 5% during the current week.
At 01:51 PM, the Nifty Pharma index was up 1% at 11,262 as compared to 0.7% rise in the benchmark Nifty 50 index.
Thus far in current week, the pharma index rallied 4.8%, its sharpest week gain since week ended January 31, 2016. The benchmark index was up 3.2% during the period.
Strides Shasun has rallied 7% to Rs 1,205 on the BSE in intra-day trade after the company announced successful completion of the United States Food and Drug Administration (USFDA) inspection of its oral dosage facility in Bangalore with 'Zero 483s'.
“The oral dosage facility in Bangalore manufactures oral dosage forms including tablets, capsules, ointments and liquids. The manufacturing plant supports important current and future submissions for the US market”, Strides Shasun said.
Alembic Pharmaceuticals was trading higher by 1% at Rs 582, extending its Thursday’s 5% surge after the company said the US health regulator conducted a successful inspection of its active pharmaceutical ingredient (API) facilities at Panelav, Gujarat.
“The company's API facilities i.e. API I and API II both located at Panelav have been successfully inspected by the United States Food and Drug Administration (USFDA) between June 20, 2016 and June 29, 2016. The Company did not receive any Form 483 observations,” Alembic Pharmaceuticals said in a filing.
JB Chemicals & Pharmaceuticals on Monday said that its Panoli tablet manufacturing facility received approval from USFDA. The stock gained nearly 6% during the current weeks.
Dr Reddy Laboratories was trading higher by 3% to Rs 3,485, extending its previous day’s 3% gain on reports that the company to seek meeting with USFDA this month. In past five trading sessions, the stock surged 11% from Rs 3,153 on June 24, 2016.
“Dr Reddy Laboratories has provided 3 updates to the USFDA in Jan 2016, Mar 2016 and May 2016. As per the 20-F, DRL incurred costs of Rs 230 crore (USD 35 million) in FY16, towards remediation of 3 facilities (Srikakulam, Mriyalguda and Duvvada) under a warning letter,” Emkay Research said in an annual report analysis.
The brokerage firm believes Dr Reddy Laboratories’ efforts to strengthen the US product pipeline through in-licensing deals and acquisitions are a positive, and should support growth over the medium term in the absence of new approvals from Srikakulam.
Strides Shasun, Alembic Pharmaceuticals and JB Chemicals & Pharmaceuticals have announced the successful completion of the United States Food and Drug Administration (USFDA) inspection of their manufacturing facilities.
Besides these three stocks, Dr Reddy’s Laboratories, Lupin, Cipla, Marksans Pharma, Suven Life Sciences, Sanofi India, Aurobindo Pharma and JB Chemicals, Torrent Pharmaceuticals are among 21 pharma stocks from Nifty 500 index, have rallied more than 5% during the current week.
At 01:51 PM, the Nifty Pharma index was up 1% at 11,262 as compared to 0.7% rise in the benchmark Nifty 50 index.
Thus far in current week, the pharma index rallied 4.8%, its sharpest week gain since week ended January 31, 2016. The benchmark index was up 3.2% during the period.
Strides Shasun has rallied 7% to Rs 1,205 on the BSE in intra-day trade after the company announced successful completion of the United States Food and Drug Administration (USFDA) inspection of its oral dosage facility in Bangalore with 'Zero 483s'.
“The oral dosage facility in Bangalore manufactures oral dosage forms including tablets, capsules, ointments and liquids. The manufacturing plant supports important current and future submissions for the US market”, Strides Shasun said.
Alembic Pharmaceuticals was trading higher by 1% at Rs 582, extending its Thursday’s 5% surge after the company said the US health regulator conducted a successful inspection of its active pharmaceutical ingredient (API) facilities at Panelav, Gujarat.
“The company's API facilities i.e. API I and API II both located at Panelav have been successfully inspected by the United States Food and Drug Administration (USFDA) between June 20, 2016 and June 29, 2016. The Company did not receive any Form 483 observations,” Alembic Pharmaceuticals said in a filing.
JB Chemicals & Pharmaceuticals on Monday said that its Panoli tablet manufacturing facility received approval from USFDA. The stock gained nearly 6% during the current weeks.
Dr Reddy Laboratories was trading higher by 3% to Rs 3,485, extending its previous day’s 3% gain on reports that the company to seek meeting with USFDA this month. In past five trading sessions, the stock surged 11% from Rs 3,153 on June 24, 2016.
“Dr Reddy Laboratories has provided 3 updates to the USFDA in Jan 2016, Mar 2016 and May 2016. As per the 20-F, DRL incurred costs of Rs 230 crore (USD 35 million) in FY16, towards remediation of 3 facilities (Srikakulam, Mriyalguda and Duvvada) under a warning letter,” Emkay Research said in an annual report analysis.
The brokerage firm believes Dr Reddy Laboratories’ efforts to strengthen the US product pipeline through in-licensing deals and acquisitions are a positive, and should support growth over the medium term in the absence of new approvals from Srikakulam.
| Company | LTP | One-week before | % chg |
| SANOFI INDIA | 4,710.00 | 4,131.45 | 14.00 |
| MARKSANS PHARMA | 49.20 | 43.30 | 13.63 |
| STRIDES SHASUN | 1,181.95 | 1,058.65 | 11.65 |
| DR REDDY'S LABS | 3,489.15 | 3,153.25 | 10.65 |
| CAPLIN POINT LAB | 1,054.00 | 961.90 | 9.57 |
| SUVEN LIFE SCIE. | 205.50 | 188.35 | 9.11 |
| BLISS GVS PHARMA | 93.75 | 86.30 | 8.63 |
| ALEMBIC PHARMA | 581.75 | 539.00 | 7.93 |
| IPCA LABS. | 489.45 | 458.65 | 6.72 |
| DISHMAN PHARMA. | 140.95 | 132.15 | 6.66 |
| UNICHEM LABS. | 283.00 | 265.50 | 6.59 |
| CIPLA | 507.85 | 476.55 | 6.57 |
| VINATI ORGANICS | 545.00 | 511.65 | 6.52 |
| AUROBINDO PHARMA | 746.60 | 700.90 | 6.52 |
| LUPIN | 1,553.20 | 1,462.90 | 6.17 |
| J B CHEM & PHARM | 249.40 | 235.85 | 5.75 |
| WOCKHARDT | 939.40 | 888.90 | 5.68 |
| GLENMARK PHARMA. | 807.15 | 765.40 | 5.45 |
| AARTI DRUGS | 467.55 | 444.35 | 5.22 |
| TORRENT PHARMA. | 1,389.95 | 1,322.00 | 5.14 |
| CADILA HEALTH. | 327.95 | 312.20 | 5.04 |
| LTP : Last traded price on NSE in Rs at 01:51 PM | |||