Lupin shares hit 52-week high, Cipla shares jump 6% after Perrigo recalls albuterol sulfate

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Shares of Lupin surged over 7 percent to hit their 52-week high of Rs 1,111.40 while those of Cipla surged over 6 percent in morning trade on BSE on September 18.

Both stocks attracted traction after the Irish pharma company Perrigo voluntarily recalled albuterol sulfate inhalation aerosols over concerns that some may not dispense properly due to clogging.

This is expected to benefit Cipla and Lupin and other pharma players too.

As per CNBC-TV18, global brokerage firm Macquarie said the setback for Perrigo has come as an unexpected positive for Lupin and Cipla

Lupin and Cipla are Perrigo’s competitors in the $850-900 million US albuterol sulfate market, Macquarie pointed out.

"While Cipla launched gProventil in April, Lupin’s gProAir launch is expected this month. We build in $40 million and $60 million in sales in FY21 for Lupin & Cipla, respectively. If Perrigo’s relaunch is delayed, the opportunity for Lupin & Cipla will rise further," said Macquarie.

The global brokerage added that there is a 4-6 percent upside risk to its FY21 EPS estimates for Lupin & Cipla

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