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Pharma shares on roll; CNX Pharma index hits new high

Sun Pharma, Ranbaxy Lab, Aurobindo, Glenmark Pharma, Strides Arcolab, Divi's Lab, Lupin and Cipla are up 1-6% on

SI Reporter  |  Mumbai 

Shares of pharmaceutical companies are on a roll with most of the frontline stocks have rallied up to 7% during intra-deal trade in otherwise subdued market on back of positive announcements.

Sun Pharmaceutical Industries, Ranbaxy Laboratories, Aurobindo Pharma, Glenmark Pharmaceuticals, Strides Arcolab, Divi’s Laboratories, Lupin, Cadila Healthcare, Cipla and Dr Reddy’s Laboratories are up 1-6% on the National Stock Exchange (NSE).

The NSE CNX Pharma index, the largest gainer among sectoral indices, was up 1.8% at 10,689 compared to 0.02% rise in benchmark CNX Nifty at 1100 hours. CNX Pharma index touched a record high of 10,742 during intra-day today.

The S&P BSE Healthcare index too rallied 1.8% or 246 points at 14,102 against 0.03% rise in S&P BSE Sensex. The pharma index hit a new high of 14,173 in intra-day deal.

Sun Pharma has rallied 4% to Rs 836, extending its Friday’s 4% gain, after the drug maker received a Form 483, following the USFDA audit on its Halol plant in Gujarat, an analyst note from Credit Suisse said. The stock opened at Rs 808 and hit a high of Rs 840 on NSE.

As per Form 483, FDA will seek corrective action from the company while it will not issue an import ban. The Halol unit in Gujarat accounts for about 40% of Sun's US sales and 25% of consolidated profit of the company. The US market accounts for 60% of the company's total sales.

Aurobindo Pharma has surged nearly 6.5% to Rs 938, also its record high on the BSE. The stock zoomed 17% in past three trading sessions from Rs 801 on September 24, after Medicines Patent Pool (MPP), an United Nations arm, has entered into sub-licencing agreement with the company for generic manufacturing a HIV drug tenofovir alafenamide for 112 developing countries.

Strides Arcolab too gained 4% to Rs 667 after the company said it intends to invest $20 million in Biotech business and after providing for taxes, the balance will be available for distribution to shareholders subject to the approval of Board of Directors. The stock opened at Rs 649 and hit a high of Rs 677 on BSE.

On September 25, Strides Arcolab said it has agreed to receive from Mylan Inc., USA, an amount of $150 million as the full and final settlement against the contingent holdback of upto $250 million.

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First Published: Mon, September 29 2014. 11:00 IST