You are here: Home » Markets » News
Business Standard

Indoco Remedies soars 19% on US FDA approval for Apixaban tablets

Apixaban is an anticoagulant, or blood thinner, used for patients with health problems caused by a blood clot

Indoco Remedies  | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

The government is now trying to understand how long it will take before the drug’s production can start in India
The stock of Indoco Remedies hit a 52-week high of Rs 285 on April 13, 2020

Shares of moved higher by 19 per cent to Rs 265 in the intra-day trade on the BSE on Monday after the company announced that it has received approval from the US health regulator for blood-thinning drug Apixaban tablets. The approved product is therapeutically equivalent to the reference listed drug Eliquis of Bristol-Myers Squibb.

"The company has received approval from the US Food and Drug Administration (US FDA) for its abbreviated new drug application (ANDA) for Apixaban tablets in the strengths of 2.5 mg and 5 mg," said in a press release.

Apixaban is an anticoagulant or blood thinner and is used for patients with health problems caused by a blood clot. As per IMS MAT June'20 data, the US market size of Apixaban tablets is $ 11,037 million.

Last month, rating agency ICRA, after due consideration, upgraded the long-term rating for the Line of Credit (LOC) to [ICRA]A+ from [ICRA]A. The outlook on the long-term rating has been revised to stable from negative.

"The upgrade of the rating factors in the improved financial profile of Indoco Remedies, driven by a pickup in its high-margin international formulations sales following the resolution of the regulatory non-compliances at two of its three affected plants. Coupled with limited capital expenditure (capex) and controlled working capital intensity of operations, this led to a reduction in the company's total debt to Rs 268 crore as on June 30, 2020 vis-a-vis Rs 296.3 crore as on March 31, 2019," ICRA said in rating rationale.

The company's revenue outlook for the international formulations segment remains strong. It reported a healthy 61 per cent year on year (YoY) growth in international formulations in Q1 FY2021 and is expected to continue to witness high revenue growth over the medium term. The company has launched five new products (including one solid oral and four injectables) in US in five months of FY2021 and plans to launch another three-four products in FY2021.

At 01:31 pm, was up 16 per cent to Rs 257 on the BSE, as compared to 0.35 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 1.09 million equity shares changing hands on the NSE and BSE so far. The stock of Indoco Remedies hit a 52-week high of Rs 285 on April 13, 2020.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 14 2020. 13:33 IST