New Delhi: Several pharma stocks were buzzing on Friday as the National Pharmaceuticals Pricing Authority (NPPA) issued multiple notifications over pricing regulations of various drugs.
NPPA has given its nod to increase the ceiling price of multiple drugs by giving a one time increase of 50 per cent from the present level. It is likely to add to the revenue of the companies.
The drugs which are included in the list released by the authority are Carbamazepine, Ranitidine and Ibuprofen. They are available in the form of liquid oral doses or tablets under different brand names.
Shares of and Indoco Remedies rallied 20 per cent each to Rs 194.15 and 482.95, respectively. Vineet Labs soared 10 per cent to 81.75 on Friday. All three companies hit their respective upper circuit limits.
Hikal added 15 per cent to Rs 568.80, whereas Sandhu Pharma surged 12 per cent to Rs 57.50. IOL Chemicals gained 10 per cent to Rs 667.95.
Aarti Drugs, Aurobindo Pharma, Caplin Point Labs, Granules India, JB Chemicals and Pharma, Take Solutions and Vivimed Labs jumped between 4-7 per cent each during the session.
In a separate notification, the NPPA has approved the ‘Tapentadol Nasal Spray’ of Torrent Pharmaceuticals. Following the update, shares of Torrent Pharma soared 4 per cent to Rs 3,038.05 on Friday.
G Chokkalingam, founder of Equinomics, says that there is scope for gaining from pharma sector as exports have improved and sale of domestic formulations are also expected to improve.
“However investors should be cautious in chasing mid-sized pharma stocks which are trading at more than 5 to 6 times enterprise value to sales,” he added. “Unless such companies post impressive profit growth one should stay away from them.”
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
