Aurobindo Pharma Surges 4% On US Approval For Cholesterol Drug
Aurobindo Pharma surged nearly 4 per cent to Rs 788 today after the drugmaker launched the Rosuvastatin Calcium Tablets in the US following approval from the American drug regulator.
Aurobindo Pharma said it has received final approval from the US FDA to manufacture and market Rosuvastatin Calcium Tablets.
Rosuvastatin Calcium is a cholesterol-lowering medicine.
Since Aurobindo is one of the first applicants to submit application for launching the drug, the pharma company is eligible for 180 days of generic drug shared exclusivity in the US, the Indian drugmaker said.
The product has an estimated annual market size of $6.7 billion.
In another development, global brokerage JP Morgan has initiated its coverage on the stock with an "overweight" rating for a target price of Rs 900 per share, indicating a potential upside of 18 per cent over Tuesday's closing price.
JP Morgan expects 18 per cent compound annual growth rate (CAGR) in its earnings over FY17-19. With improved execution, US market is likely to be the key growth driver for Aurobindo Pharma, the brokerage said. Debt reduction efforts to be another trigger for the stock over next two years, it added.
The brokerage expects Aurobindo Pharma's profit margin to expand by 150 basis points by FY18.
As of 10:32 a.m., shares of Aurobindo Pharma shares traded 3.1 per cent higher at Rs 784 apiece compared to 0.23 per cent gains in the broader Nifty index.
Source: - Moneycontrol.com