Strides Shasun gathers pace after getting USFDA nod for drug

Strides Shasun rose 1.33% to Rs 1,021.55 at 11:14 IST on BSE after the company announced that it has received approval from the United States Food & Drug Administration for Omega-3-Acid Ethyl Esters Softgel capsules, a generic version of Lovaza.

The announcement was made before market hours today, 20 September 2017.

Meanwhile, the S&P BSE Sensex was up 24.84 points or 0.08% at 32,427.21. The S&P BSE Mid-Cap index rose 13.53 points or 0.08% at 16,124.36.

More than usual volumes were witnessed on the counter. On the BSE, 54,081 shares were traded on the counter so far as against the average daily volumes of 25,795 shares in the past one quarter. The stock had hit a high of Rs 1,040.80 and a low of Rs 1,006.55 so far during the day. The stock had hit a 52-week high of Rs 1,259 on 3 February 2017 and a 52-week low of Rs 848.50 on 24 May 2017.

The stock has gained 10.94% in eight sessions to its ruling price from a close of Rs 920.75 on 8 September 2017.

The stock had outperformed the market over the past one month till 19 September 2017, gaining 11.18% compared with 2.78% gains in the Sensex. The scrip had also outperformed the market in past one quarter, rising 7.72% as against Sensex's 3.48% rise. The scrip had, however underperformed the market in past one year, falling 2.64% as against Sensex's 13.16% rise.

The mid-cap company has equity capital of Rs 89.49 crore. Face value per share is Rs 10.

The US market for the generic Lovaza is approximately $300 million per annum annually, as per IMS, with five generic players including Par Pharmaceutical (Par), an Endo International Company.

The company has partnered with Par to market the product in the United States. The product to be manufactured in its flagship facility in Bangalore will be launched immediately.

On a consolidated basis, Strides Shasun's net profit fell 82.2% to Rs 5.78 crore on 6.6% growth in net sales to Rs 841.77 crore in Q1 June 2017 over Q1 June 2016.

Strides Shasun is a vertically integrated global pharmaceutical company. It has four business verticals viz. regulated markets, emerging markets, institutional business and active pharmaceutical ingredients.

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