Drug stocks get a booster

Indian pharma companies in action; announce global tie-ups and product launches.

Pharmaceutical stocks, which were on the run, are back in the running on the bourses on the back of positive developments in the sector. The Bombay Stock Exchange (BSE) healthcare index on Monday closed at an all-time high of 2580.24. The index outperformed all other sectoral indices, appreciating 14 per cent. In comparison, the Sensex posted an 8 per cent rise.

Indian pharmaceutical companies were in the news for all of last week, with headline-grabbing announcements of foreign tie-ups and new product launches.

As a result, Glenmark Pharmaceuticals, Nicholas Piramal, Shasun Chemicals, Sun Pharma, Themis Medicare, Ind Swift, Syncom Formulation, Ind Swift Labs, Pearl Organics and Venus Remedies on Monday closed at lifetime highs. Aventis Pharma, Abbott India, Novartis India, Wyeth Lederle, Torrent Pharma, Cipla and Hester Pharma closed at more than two-year highs on the BSE.

In the last three trading days, the Glenmark Pharmaceuticals scrip has appreciated 33 per cent from Rs 194.85 on Wednesday to Rs 259.25 on Monday after the company entered into an agreement with Forest Laboratories of the US. The two companies will develop and commercialise the 'inhibitor GRC 3886' to treat chronic obstructive pulmonary disorder and asthma.

Wockhardt's market price has appreciated by 28 per cent in the last one month from Rs 279.75 to Rs 357.25. The company inaugurated its biotech park, a new world-scale biopharmaceutical complex in Aurangabad on September 23.

On the same day, Ranbaxy Laboratories announced it had received approvals from the United States Food and Drug Administration (FDA) to manufacture and market Loratadine and Pseudoephedrine Sulfate Extended-release tablets. The stock has appreciated by 15 per cent from Rs 947.80 to Rs 1,086.20 in the last one month.

On September 13, JB Chemicals and Pharma announced that it had received final FDA approval to manufacture and market ciprofloxacin tablets in the US market. The stock moved by 16 per cent from Rs 290.39 to Rs 337.25 in the last one month.

Abbott India's market price has appreciated by 33 per cent in the last one month from Rs 449.20 to Rs 598.15. Novartis' market price has also increased by 33 per cent to Rs 590.79 (Rs 443.95), Vimta Labs by 32.65 per cent to Rs 608.65 (Rs 458.85), Solvay Pharma by 43 per cent to Rs 261.14 (Rs 182.70), Ind Swift by 42 per cent to Rs 176.45 (Rs 124.05) and Wyeth by 27 per cent to Rs 504.60 (Rs 398.10).