Aurobindo Pharma jumps after FDA approval for generic drug

Aurobindo Pharma surged 4.98% to Rs 770.30 at 9:26 IST on BSE after the company said it has received final approval from the US drug regulator to manufacture Sevelamer Carbonate tablets 800mg.

The announcement was made before market hours today, 19 July 2017.

Meanwhile, the S&P BSE Sensex was up 95.99 points or 0.3% at 31,806.98.

On the BSE, 2.26 lakh shares were traded on the counter so far as against the average daily volumes of 3.53 lakh shares in the past one quarter. The stock had hit a high of Rs 794.50 and a low of Rs 768.55 so far during the day. The stock had hit a record high of Rs 895 on 6 October 2016 and a 52-week low of Rs 504 on 29 May 2017.

The stock had outperformed the market over the past one month till 18 July 2017, advancing 12.43% compared with the Sensex's 2.11% rise. The stock had also outperformed the market over the past one quarter, gaining 10.57% as against the Sensex's 8.16% rise. The scrip had, however, underperformed the market over the past one year, sliding 2.25% as against the Sensex's 14.29% rise.

The large-cap company has equity capital of Rs 58.59 crore. Face value per share is Rs 1.

Aurobindo Pharma received final approval from the US Food & Drug Administration (USFDA) to manufacture Sevelamer Carbonate tablets 800mg. Sevelamer Carbonate tablets, are therapeutic equivalent generic version of Genzyme's Renvela tablets. The product is being launched immediately.

Sevelamer Carbonate tablets are indicated for the control of serum phosphorus in patients with chronic kidney disease (CKD) on dialysis. The approved product has an estimated market size of $1.9 billion for the twelve months ending May 2017 according to IMS.

On consolidated basis, net profit of Aurobindo Pharma declined 4% to Rs 532.45 crore on 2.5% decline in net sales to Rs 3582.13 crore in Q4 March 2017 over Q4 March 2016.

Aurobindo Pharma manufactures generic pharmaceuticals and active pharmaceutical ingredients.

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