Morepen Laboratories surges 14% on USFDA approval for Baddi facility

The stock surged 14% to Rs 36.20 on the NSE after the company received USFDA approval for both its bulk drugs manufacturing facilities situated in Himachal Pradesh.

Shares of Morepen Laboratories have surged 14% to Rs 36.20 per share on the National Stock Exchange (NSE) in intra-day trade on back of heavy volumes after the company announced that it has received United States Food and Drug Administration (USFDA) approval for both its bulk drugs manufacturing facilities situated in Himachal Pradesh.

“While the Baddi facility has got US FDA approval for the manufacture of bulk drug "Atorvastatin Calcium", a Cholesterol reducing drug, the Masulkhana facility has recently got the nod for manufacturing an anti-asthma bulk drug "Montelukast Sodium" for export to the US market,” Morepen Laboratories said in a press release.

It is significant to note here that the US market size for these two bulk drugs viz. Atorvastatin Calcium and Montelukast Sodium is approximately Rs 50 billion and Rs 20 billion respectively. The two APIs collectively contributes around Rs 1.50 billion annual revenue to the company's topline and constitutes 44% of the company's total API business, it added.

At 01:43 pm; the stock was trading 11% higher at Rs 35.30 on the BSE, as compared to 0.39% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than four-fold with a combined 4.98 million equity shares changed hands on the NSE.