Strides Arcolab hits new high on US nod for antibiotic
Pharma company Strides Arcolab has received approval from US Food and Drugs Administration for Vancomycin Hydrochloride capsules of 125 mg and 250 mg strengths.
April 11, 2012 / 16:18 IST
Moneycontrol Bureau
Pharma company Strides Arcolab has received approval from US Food and Drugs Administration for Vancomycin Hydrochloride capsules of 125 mg and 250 mg strengths.The stock jumped to its life high of Rs 634.40 post the announcement on NSE on Wednesday. It was trading at Rs 630.50, up 5.3% in noon trade.Vancomycin is glycopeptides antibiotic used in the treatment of infections caused by gram-positive bacteria and has traditionally been used only after treatment with other antibiotics has failed, the company said.Vancomycin capsules had total US sales of USD 332 million for the year ended February, Strides said citing IMS Health data.The company said it will launch the product immediately through Alvogen on a profit share basis.Alvogen is a US-based generic drug maker and has tie-up with Strides to market the later's products."We believe the product should generate USD 10 million and USD 1.6 million in sales and profit respectively for Strides Arcolab," said Hitesh Mahida of Fortune Equity Brokers.Two more generic pharma companies also have received approval to market the drug and so the analyst expects Vancomycin prices will fall 70-80% in the US market. Despite competition from other players, Strides Arcolab should be able to carve a 20% market share for its drug, he said. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
