Tyco alliance fails to enthuse Cadila

DALAL STREET SPIKES

Domestic pharma company, Cadila Healthcare, ended in the negative region inspite of the company announcing its initiative to focus on the US generics market. The stock from its intra-day high of Rs 530, up over 2 per cent, slipped at close to Rs 505.

The counter witnessed volumes of more than 68 thousand shares on BSE alone. Market analysts said, battered pharma stock are back in limelight witnessing renewed buying interest in the last few trading sessions.

Wednesday's announcement by Cadila gave a trigger to the stock during intra-day trades, the analysts added. The BSE healthcare index was the biggest gainer among the indices, up 1.86 per cent to close at 2755.71.

Cadila Healthcare's US subsidiary Zydus Pharmaceuticals (USA) Inc. has entered into a strategic alliance with Mallinckrodt Pharmaceuticals Generics, a business unit of Tyco Healthcare.

The company also recently got a approval for anti-hypertensive drug, Atenolol. The company, however, had a disappointing December ended quarter. Cadila's consolidated profit after tax declined 30 per cent to Rs 28.10 crore. Sales too rose just 1 per cent to Rs 305.10 crore.