Alembic Pharma trending up after approval from USFDA
Stock surges up by nearly 4%
Alembic Pharmaceuticals Ltd witnessed a spike in stock price on the back of receiving USFDA final approval for its Doxycycline Hyclate delayed-release tablets USP, 75 mg, 100 mg, 150 mg, and 200 mg. The stock price has zoomed today by about 4%. The company was seen trending in the news as the US Food and Drug Administration has given a green signal to the company for its Abbreviated New Drug Application (ANDA) for the above tablets. The tablets help reduce the development of drug-resistant bacteria.
According to its press release, Alembic has received year to date (YTD) 16 approvals (12 final approvals and 4 tentative approvals) and a cumulative total of 155 ANDA approvals (135 final approvals and 20 tentative approvals) from USFDA.
Last month, this midcap pharma company was in the news with the announcement of a strategic investment in RIGlmmune Inc, a biopharmaceutical research company, which has a focus on developing novel treatments for RNA viruses. Alembic had acquired preferred stock amounting to a 19.97% post-money stake in the first closing of the series seed round.
Looking at the financials, the company had a sloppy September quarter, especially when compared with the corresponding quarter last fiscal. Its net sales stood at Rs 1292 crore which saw sequential degrowth of 2.54% and 11.31% on a YoY basis. The EBITDA stood at Rs 257 crore and saw a sequential rise of 9% but a YoY decline of nearly 42%. Even though the profitability has witnessed a growth of 8.35% to Rs 160.7 crore, it declined by 50.6% in Q2 FY21.
The stock has a 52-week high of Rs 1,119.00 and a 52-week low of Rs 720.80. The scrip is trading near the P/E level of 18.2.
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