Dishman Pharma shares surge 20%

Shares of Dishman Pharmaceuticals surged 20 per cent today after the company's partner Tesaro got the US Food and Drug Administration's approval for an ovarian cancer drug.

The stock soared 19.99 per cent to Rs 278.20, its 52-week high and also the highest trading permissible limit for the day on BSE.

At NSE, shares of the company jumped 20 per cent to end at Rs 278.70.

The company's market valuation rose by Rs 748.99 crore to Rs 4,489.99 crore on BSE.

On the volume front, 4 lakh shares of the company were traded on BSE and over 25 lakh shares changed hands at NSE during the day.
 

Meanwhile, in a clarification to BSE the company said, "We are a Global Contract Research and Manufacturing Services (CRAMS) company specialising in developing and manufacturing Active Pharmaceutical Ingredients for our customers. Currently, we have about thirteen molecules in late phase lll development across various customers.

"We, as an API supplier, are bound by strict confidentiality agreements with our customers and will not have any prior knowledge of the stage of development of the customer's end product. We believe that the increase in the stock price is based upon market estimation that we are one of the suppliers of the API for 'Zejula' capsules, which got approved by the US FDA as per the press release given by Tesaro lnc."

Since the company does not manufacture the innovator's end product in CRAMS segment, it is Tesaro lnc, which has received the US FDA approval for cancer drug Zejula capsules and not Dishman Pharmaceuticals and Chemicals Limited, as mentioned in the news item, it said.