Moneycontrol
Jul 30, 2015 01:33 PM IST | Source: Moneycontrol.com

Cipla rises 4% on asthma drug launch, Kotak says buy

Kotak has a buy rating on Cipla with a target price of Rs 730 per share. Expecting launch of other two strengths (USD 600 million) in days to follow , the brokerage says Cipla will receive mark-up and profit share.

 
 
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Moneycontrol Bureau


Shares of Cipla surged 4 percent intraday on Thursday on launch of asthma treatment medicine. In partnership with Sandoz, the drug company has launched Pulmicort Respules 1mg /ml version which is used for long-term treatment of asthma and prevention of asthma. Cipla has 180 day exclusivity with Sandoz for the medicine.


Branded sales of the drug stands at USD 242 million in the US market. Sandoz and Cipla are the only companies that have approval for 1 mg/ml version of Pulmicort Respules.

Analysts say Cipla can generate around USD 25 million and upto USD 50 million also in FY16 as they see limited competition even beyond 180 day exclusivity. 
Analysts also expect that Sandoz will launch the other dosage forms as well.


Following the launch, Kotak has a buy rating on Cipla with a target price of Rs 730 per share. Expecting launch of other two strengths (USD 600 million) in days to follow , the brokerage says Cipla will receive mark-up and profit share.

At 11:32 hrs Cipla was quoting at Rs 705.15, up Rs 27.50, or 4.06 percent on the BSE.

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