Revolutionary Cancer Drug Gets USFDA Nod: Pharma Stock Jumps Over 4%

The Sensex and Nifty began the day with gains, opening higher by 0.38% and 0.42%, respectively. However, both closed on a lower note, declining by 0.66% for the Sensex and 0.6% for the Nifty.

In this volatile market sentiment, the shares of Zydus Lifesciences Limited soared 4.39% and the stock hit a fresh 52-week high mark of Rs 656.50 per share on BSE. Additionally, the scrip witnessed a spurt in volume by more than 3.30 times. This indicates heavy buying among investors. The company’s current market capitalization is Rs 65,773.02 crore.

On July 27, 2023, there were several recent developments in the company, details as follows:

The company along with its subsidiaries and affiliates has received final approval from the United States Food and Drug Administration (USFDA) for Plerixafor Injection, 24 mg/1.2 mL (20 mg/mL), Single-Dose Vial.

This drug, known as Mozobil Injection in the US, is used to prepare patients with certain types of cancer, such as non-Hodgkin’s lymphoma (NHL) and multiple myeloma (MM), for stem cell transplant. The manufacturing of Plerixafor Injection will take place at Zydus Lifesciences Ltd.’s (Alidac) injectable manufacturing facility in SEZ, Ahmedabad, India.

Plerixafor Injection, 24 mg/1.2 mL (20 mg/mL), Single-Dose Vial has recorded annual sales of USD 210 million in the United States as of IQVIA MAT May 2023.

With this approval, the group has achieved a total of 374 approvals and has an impressive track record of filing over 442 ANDAs (Abbreviated New Drug Applications) since the commencement of the filing process in FY 2003-04.

Furthermore, today the company also as a joint venture partner, has signed an agreement with Bayer (South East Asia) PTE Limited to amend specific clauses of the joint venture agreement.

The primary purpose of entering into this agreement was to establish a joint venture company for carrying out the business of marketing pharmaceutical products.

Regarding the amendment of the agreement, an amendment was made on July 27, 2023, to allow participation in tenders of certain government institutions/public sector undertakings for specific products through an affiliated entity of one of the JV Partners.

Overall, these developments reflect Zydus Lifesciences’ commitment to advancing in the pharmaceutical sector, which may instil confidence among shareholders and investors about the company’s growth prospects and its ability to create value in the long run.

Company profile 

In 1995, the Zydus group underwent restructuring, leading to the establishment of Cadila Healthcare within its umbrella. Starting with a modest turnover of Rs. 250 crores in 1995, the group experienced remarkable financial growth, achieving a turnover of over Rs. 14,253 crores in FY20.

Adhering to its brand promise of dedicating itself to life in all aspects, Zydus remains committed to innovation and unwaveringly focuses on addressing unmet healthcare needs. Moreover, the company rededicates itself to its mission of fostering healthier and happier communities worldwide.

The stock has witnessed significant buying activity as it has surged more than 84% in the last 1 year.  

Keep a close eye on this trending pharmaceutical stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.