Shares of Lupin and Cipla rose 5% to 6% after Perrigo Company plc announced a voluntary U.S. nationwide recall of albuterol sulfate inhalation aerosol over concerns that some may not dispense properly due to clogging.
Lupin jumped 6.75% to Rs 1108. The stock rose as much as 7.39% at the day's high at Rs 1114.65 today, which is also 52-week high for the counter.
Cipla surged 5.84% to Rs 796. The scrip jumped as much as 6.35% at the day's high at Rs 799.80 today.
Perrigo Company, the Dublin-based maker of over-the-counter and generic health products, already halted production and distribution of the aerosols. These actions are being taken out of an abundance of caution as a result of complaints that some units may not dispense due to clogging. Perrigo's generic albuterol sulfate inhalation aerosol was developed in partnership with and manufactured by Catalent Pharma Solutions.
"Corrective action plans are underway and a definitive timeline for product reintroduction has not been determined at this time," Perrigo said in a statement.
Also Read
A foreign brokerage firm reportedly said the setback for Perrigo has come as an unexpected positive for Lupin and Cipla. Lupin and Cipla are Perrigo's competitors in the $850-900 million US albuterol sulfate market.
Cipla received approval from the United States Food and Drug Administration (USFDA) for its albuterol sulphate inhaler in April this year. Lupin secured USFDAs approval for its Albuterol Sulfate Inhalation Aerosol in August 2020.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
