Moneycontrol
Jun 19, 2017 10:53 AM IST | Source: Moneycontrol.com

Cadila Health gains 2% on USFDA nod for anti migraine drug, Morgan Stanley overweight call

Morgan Stanley said with the Moraiya resolution past, it expects the new product approval cycle for the US market to intensify.

Cadila Health gains 2% on USFDA nod for anti migraine drug, Morgan Stanley overweight call

Moneycontrol News

Cadila Healthcare shares gained as much as 2.4 percent in morning trade Monday on approval from the US health regulator for anti-migraine drug.

Group company Zydus Cadila has received the final approval from the US Food and Drug Administration to market Eletriptan hydrobromide tablets, 20 mg and 40 mg.

"The drug, which is used in the treatment of migraine, will be produced at the group's formulations manufacturing facility at Pharma SEZ, Ahmedabad," the pharma company said in its filing.

With this, the group now has more than 120 approvals and has so far filed over 300 ANDAs since the commencement of filing process in FY04.

Morgan Stanley said with the Moraiya resolution past, it expects the new product approval cycle for the US market to intensify.

With 200 ANDAs are pending approval, it expects 40-plus approvals in the next 12-15 months.

The research house feels several niche products and operating leverage give strong earnings visibility. It sees FY18-19 EPS CAGR of 39.1 percent.

Morgan Stanley has retained its overweight rating on Cadila Healthcare and expects the stock to hit Rs 619 in 12-months.

After clearance from USFDA to its Moraiya facility in February, the company has received approvals for four drugs that filed from this facility.

At 10:32 hours IST, the stock price of Cadila Healthcare was quoting at Rs 533.50, up Rs 8.10, or 1.54 percent on the BSE.

Posted by Sunil Shankar Matkar
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