Glenmark Pharma gets a booster shot with launch of oral Covid-19 drug

Limited revenue visibility is restricting analysts to upgrade earnings even as they have upped the PE multiple for the stock

Investor sentiment towards Glenmark Pharmaceuticals received a booster dose following the launch of Fevipiravir, an oral drug to treat mild-to-moderate infections, in India. The stock gained 40 per cent intra-day to reach a high of Rs 572.70 on Monday, before closing at Rs 519.80, a gain of 27.06 per cent.

Cipla, too, scaled a 52-week high and rose 9 per cent in intra-day trade, before closing up 2.94 per cent. The firm, which had earlier sought an approval, is likely to start supplies of anti-viral drug Remdesivir soon.

Launch of this drug bodes well for Glenmark’s prospects. However, the stock movement was