Cipla gains 3%, hits record high; trades higher for 5th straight day



Shares of Cipla hit a record high of Rs 1,014, up 3 per cent on the BSE in Friday’s intra-day trade and surpassed its previous high of 1,005 touched on September 29, 2021. The stock of pharmaceutical company traded higher for the fifth straight day, up 6 per cent during this period. In comparison, the S&P BSE Sensex was up 0.13 per cent at 55,535 points at 11:14 am.

In the last 10 trading days, the stock has rallied 10 per cent after the company on February 27, announced that it has received an approval from the Subject Expert Committee (“SEC”) of the Central Drugs Standard Control Organization (“CDSCO”) to conduct local trials on anti Covid-19 pill Paxlovid on February 24, 2022.

Cipla is the third Company that has been granted such an approval by CDSCO. Basis the approval, Cipla will conduct Bioavailability and Bioequivalence (“BA/BE”) studies and submit safety data for review as per requisite timelines. Approvals received from the regulator for conducting local trials on drugs is not a material information. It is part of the Company’s routine operational matter and is non-exclusive in nature, and therefore response to the other part of the query does not entail, Cipla said on clarification on the news report.

Analysts remain bullish

Meanwhile, analysts at ICICI Securities have maintained a 'buy' rating on the stock with target price of Rs 1,100. The brokerage firm believes Cipla continues to focus on its core strength of following a calibrated approach of focusing more on core therapies with front-end shift across the world.

"The management’s long-drawn strategy of targeting four verticals viz. OneIndia, South Africa & EMs, US generics & specialty and lung leadership. Across the board transformation from tenderised model to private model in exports market and more focus towards consumerisation of important TGx, Rx products in Indian branded formulations," the brokerage said.

Adding: "Cipla is focusing on front-end model, especially for the US, along with a gradual shift from loss making HIV and other tenders to more lucrative respiratory and other opportunities in the US and EU. The brokerage firm expects significant momentum from H2FY23 onwards in the US on the back of peptide portfolio unlocking and possible approvals and launches of gRevlimid, gAdvair and gAbraxane besides gains from Albuterol portfolio."


Leave a Reply

Connect with

Your email address will not be published.

Previous Post

Colombia’s Grupo Energia Bogotá unlocks 252MW capacity with FACTS

Next Post

About 40 high-rises sealed for want of BU nod: Government to Gujarat HC

Related Posts