Lupin Ltd shares surged as much as 7.7% in intra-day trade on Tuesday after the pharmaceutical company launched generic Mycophenolic acid delayed-release tablets in the US market.
The new tablets — the generic version of Novartis Pharmaceuticals Corp’s Myfortic delayed-release tablets — are used to prevent organ rejection in patients receiving kidney transplants. Lupin said it has launched the tablets in the strengths of 180 mg and 360 mg.
Mycophenolic acid delayed-release tablets USP had annual sales of around $156 million in the US, the company added, citing the IQVIA MAT February 2020 data.
Lupin also informed that the launch comes after the company’s alliance partner Concord Biotech Ltd received approval from the US Food and Drug Administration (USFDA) for the product.
After the announcement, Lupin shares hit a high of Rs 706.70 on BSE in morning trade on Tuesday. The stock has jumped over 8% in the last one month, at a time when the benchmark BSE Sensex has lost over 19% during the same period as the world battles the economic impact of the Covid-19 pandemic.
Brokerages have recently tuned positive on the Lupin stock after outlook on pharma shares improved given the ongoing health crisis. Morgan Stanley has issued an ‘overweight’ call on the Lupin stock with a target price of Rs 948 per share.
Another brokerage firm Motilal Oswal also gave a ‘buy’ rating on the stock with a target at Rs 815. The broking house said though the near-term outlook for the company may be subdued, limited price erosion in the base business, robust ANDA (abbreviated new drug application) pipeline and better-than-industry growth in the branded domestic formulation would help its financials in the long term.
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