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Aurobindo Pharma hits new high

The stock rallied 15% in past two weeks compared to 1% rise in benchmark S&P BSE Sensex.

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SI Reporter Mumbai
Last Updated : Jun 16 2014 | 12:49 PM IST
Aurobindo Pharma has moved higher by 3% to Rs 718, also its record high, in otherwise weak market on the Bombay Stock Exchange (BSE).

The stock has rallied 15% in past two weeks from Rs 623, as compared to 1% rise in benchmark S&P BSE Sensex after the company said it has received the US health regulator’s approval to market a generic version of AbbVie Inc.’s Depakote ER extended-release tablets, used for treating mental illness, in the US market.

On June 3, 2014, the company said it has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Divalproex Sodium extended-release tablets in strengths of 250mg and 500mg and the product is ready for launch.

Meanwhile, Surajit Pal analyst at Prabhudas Lilladher maintains a ‘buy’ rating on the stock with a target price of Rs 749.

The management expects good revenues from generic Cymbalta in Q1FY15 and expects competition from two more generic players from Q1FY15 onwards.
 

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First Published: Jun 16 2014 | 12:46 PM IST

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