Laurus Labs Shares Rise Over 8% After US Approval for HIV Treatment

Laurus Labs shares surged by over 8% on Thursday, January 30, after the United States approved an “emergency humanitarian waiver.” This waiver ensures that people across 55 countries can continue receiving HIV treatment funded by the US, which had been at risk due to a previous decision to halt the President’s Emergency Plan for AIDS Relief (PEPFAR).

Impact of the Waiver on Business

Earlier, Laurus Labs’ stock had dropped by over 15% after the US announced the suspension of PEPFAR, threatening to disrupt the supply of anti-viral medications for millions of people. However, Laurus Labs reassured investors, stating that any funding freeze would not significantly affect its business, as the Anti-Retro Viral (ARV) market is a small portion of its overall HIV funding. The market size of ARVs is around $1.5 billion, representing 10% of the total HIV financing budget.

Strong Financial Performance

Laurus Labs reported better-than-expected financial results for the December quarter, with EBITDA margins returning to 20% for the first time in seven quarters. The company also maintained its full-year growth guidance. Despite earlier concerns, the stock saw a positive response, gaining 6% and trading 4.1% higher at ₹565.9.

About Laurus Labs

Laurus Labs is a global pharmaceutical and biotechnology firm based in Hyderabad, India. Established in 2005 by Satyanarayana Chava, the company specialises in active pharmaceutical ingredients, generic formulations, custom synthesis, biotechnology, veterinary APIs, and agrochemicals.

Laurus Labs share price is currently trading at ₹587.85, showing a rise of ₹44.05 (8.10%) today, as of 11:13 AM on January 30. The stock opened at ₹565.95, reached a high of ₹589.90, and a low of ₹557.40. Over the past 52 weeks, its stock has ranged between ₹368.30 and ₹619.40. In the last six months, the stock has surged by 28.14%, while it has gained 58.72% over the past year. In the last five years, Laurus Labs Ltd’s stock has skyrocketed by 594.17%.

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