The share price of Cadila Healthcare rallied 3.65 percent and that of Ipca Labs 8.8 percent intraday on March 31 after the US health regulator issued Emergency Use Authorisation (EUA) for hydroxychloroquine (HCQS) and chloroquine for COVID-19, CNBC-TV18 quoted Morgan Stanley as saying.
Cadila Healthcare and Ipca Labs are prominent manufacturers of HCQs and chloroquine in India. Both are antimalarial drugs.
"The US Food and Drug Administration has limited its authorisation to drugs supplied from strategic national stockpile," Morgan Stanley said, adding both drugs had shown activity in laboratory studies against coronavirus.
"Clinical trials are needed to provide evidence that these treatments are effective and Federal agencies are working together to plan clinical trials."
In a statement published on March 29, the US Department of Health and Human Services detailed recent donations of medicine to a national stockpile, including chloroquine and hydroxychloroquine, both being investigated as potential COVID-19 treatments.
It said the FDA had allowed them "to be distributed and prescribed by doctors to hospitalised teen and adult patients with COVID-19, as appropriate, when a clinical trial is not available or feasible."
US Presient Donald Trump said last week that the two drugs could be a "gift from God", despite scientists warning against the dangers of overhyping unproven treatments.
Many researchers including Anthony Fauci, the United States' leading infectious disease expert, have urged the public to remain cautious until larger clinical trials validate smaller studies.
Two US medical bodies -- the National Institutes of Health and the Biomedical Advanced Research and Development Authority -- are working to plan such trials.
The US has more than 160, 700 cases, the highest in the world, and more than 3,000 people have died, according Johns Hopkins University. Global infections have crossed 786,000 and more than 37,000 people have died.
Ipca Labs was trading at Rs 1,345, up Rs 46.95, or 3.62 percent, and Cadila Healthcare was up Rs 6.70, or 2.66 percent, at Rs 258.80 on the BSE at 1143 hours IST.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.(With inputs from PTI)