Strides Arcolab jumps after receiving USFDA approval for cancer drug

Strides Arcolab rose 4.49% at Rs 756.95 at 11:45 IST on BSE after the company said it received final approval of US drug regulator for Oxaliplatin injection.

The announcement was made during trading hours today, 8 August 2012.

Meanwhile, the BSE Sensex was up 38.68 points, or 0.22%, to 17,640.46.

On BSE, 50,000 shares were traded in the counter as against an average daily volume of 55,973 shares in the past one quarter.

The stock hit a high of Rs 760.05 and a low of Rs 729 so far during the day. The stock had hit a record high of Rs 794 on 18 July 2012. The stock had hit a 52-week low of Rs 276.25 on 22 August 2011.

The stock had underperformed the market over the past one month until 7 August 2012, falling 0.75% compared with the Sensex's 0.46% rise. The scrip had, however, outperformed the market in past one quarter, rising 5.12% as against 4.07% rise in the Sensex.

The small-cap company has an equity capital of Rs 58.70 crore. Face value per share is Rs 10.

Strides Arcolab said its wholly-owned unit, Onco Therapies, received final abbreviated new drug application (ANDA) approval for Oxaliplatin injection 50 mg/10 ml and 100 mg/20 ml. Oxaliplatin is a chemotherepy drug used to treat advanced cancer of the colon and rectum. It is used in combination with other medications to slow or stop cancer cell growth.

The company had in November 2011 received tentative approval from U S Food and Drug Administration (USFDA) based on a Para III filing. This approval was later converted to a Para IV filing on which USFDA has now granted final approval.

According to IMS data, the US market for generic Oxaliplatin is approximately $1.5 billion. Oxaliplatin is part of the oncology portfolio licensed to Pfizer for the US market and the product is available for immediate launch.

Strides Arcolab's consolidated net profit rose 31.3% to Rs 90.48 crore on 12.6% decline in net sales to Rs 508.29 crore in Q2 June 2012 over Q2 June 2011.

Strides Arcolab develops and manufactures a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectibles.

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