Pharmaceutical company stocks rally on regulator’s approval to make anti-COVID pill

  • Shares of pharmaceutical companies were the only sector to gain on Wednesday in the weak market on optimism to sell anti-covid drugs approved by the drug regulator.
  • The pharmaceutical regulator has given approval to sell the drug Molnupiravir, which is an anti-COVID pill, for emergency use in the country.
  • Sun Pharma, Cipla, Torrent Pharma and Strides Pharma have already announced plans to launch their version of this pill soon amid growing spread of Omicron in the country.

Shares of pharmaceutical companies were the main gainers in a weak market on December 29, as the segment applauded the approval by the pharmaceutical regulator – Drugs Controller General of India (DCGI) – of an anti-covid pill for use emergency in the country.

The move comes amid an increasing spread of Omicron cases in the country. Indian companies will manufacture a generic version of Merck’s anti-COVID pill Molnupiravir in India.

Molnupiravir is an antiviral drug used to treat COVID-19 in infected people. The drug was developed by American companies Merck and Ridgeback Biotherapeutics.

This development has brought some optimism to pharmaceutical stocks which have underperformed the market for more than a year.

The best performing pharmaceutical stocks as of December 29 % change % of returns in 2021
Laurus Laboratories 2.38% 53%
Dr. Reddy’s Laboratories 1.61% -8%
Sun pharmaceuticals 1.58% 38%
Lupine 1.41% -seven%
Pot still pharmaceuticals 1.13% -22%
Divi Laboratories 1.67% 19%
cipla 1.08% 14%
Glenmark Pharmaceuticals 1.07% 3%
Natco Pharma 1% -seven%
Biocon 0.97% -22%

While the Indian companies manufacture a generic version of the pill based in the United States, they will market the pill under their respective brands and sell them in pharmacies and COVID-19 treatment centers.

Companies Anti-COVID pill
Sun pharmaceuticals Molxvir
Pharmaceuticals Torrent Molnutor
cipla Cipmolnu
Strides Pharma Science Stripiravir

Earlier this year, US pharmaceutical company Merck signed non-exclusive voluntary license agreements with more than eight Indian companies to manufacture and supply generic versions of Molnupiravir in more than 100 low- and middle-income (LMIC) countries, including India. ‘India. SEE ALSO: IPO excitement may be weaker in 2022, but that may be a good thing for investors
India is now home to 81 unicorns as Mamaearth and Globalbees make the list

Comments are closed.