Shares of Aurobindo Pharma rose 3 per cent to hit an intraday high of Rs 717.70 on BSE after the company announced that its subsidiary Eugia Pharma Specialities Ltd. Eugia has received a 505(b)(2) NDA approval from the U.S.Food & Drug Administration (USFDA) for its Cyclophosphamide Injection
500 mg/2.5 mL and 1 g/5 mL vials.
Aurobindo’s product will be available in ready-to-use (RTU) injection preparation. The product shall be launched in the US market in the near term and will be manufactured in Eugia’s manufacturing facility in India.
The stock opened 1.56 per cent higher at Rs 709 against the previous close of Rs 698.10. It has been gaining for the last 5 trading sessions and has delivered 4.92 per cent return in the same period.
With a market capitalisation of Rs 41,926 crore, the share stands higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.
The company informed that the approved product has an addressable market size of US$ 170 million for the twelve months ending June 2021 according to IQVIA.
This is the 19th product to be approved (including 3 tentative approvals) for Eugia. Aurobindo now has a total of 482 ANDA approvals (453 Final approvals and 29 tentative approvals) from USFDA.
CLSA has retained its outperform call on the stock with a target price of Rs 830 per share. The brokerage said Cronus Pharma acquisition cancelled allays capital allocation concern, adding that key near-term trigger is value unlocking from the ongoing demerger of the injectable portfolio.
On August 20, the pharma firm said its Rs 450-crore deal to buy a 51 percent stake in Cronus Pharma Specialities India Pvt Ltd (Cronus) has been cancelled.
On August 12, the company said that it had inked definitive agreements to subscribe to fresh equity shares in Hyderabad-based Cronus, a generic veterinary pharmaceutical products firm engaged in the development, manufacturing and sale of these items.
The agreements with Cronus was for acquisition of 51 percent ownership by subscribing to 95,059,963 equity shares of Rs 10 each at a premium of Rs 34.18 per equity share aggregating to Rs 420 crore.