BSE Healthcare (HC) index of 17 leading pharmaceutical companies touched to its yearly peak level today at 6,406.29 points with market capitalisation of Rs.2,40,445 crore. Out of 17 companies, the share price of 14 companies moved up. The HC index increased by 65.17 points to 6,400.90 from previous day's close of 6,335.73 points. Apollo Hospital scrip saw a growth of 10.3 per cent to Rs.572.45 from Rs.519.15. Ranbaxy Laboratories share climbed to its 52-weeks highest level to Rs.612.30 today and closed at Rs.607.20 with market capitalisation of Rs.25,548 crore.
Other HC index scrip like Sun Pharma, Orchid Chemicals, GlaxoSmithKline Pharma and Dr Reddy's Laboratories also increased by over Rs.10 today. Only two scrip viz Cadila Healthcare and IPCA Laboratories declined due to lack of buying support. Cipla remained unchanged at Rs.339.50. The HC index moved upward in line with other industrial indices. The analysts from broking firm said that the rally is likely to continue in next few trading sessions with FIIs support. The pharma companies have developed satisfactory product pipeline and are likely to get more approvals for their products from highly regulated markets. This will improve top line as well as bottom line in this quarter.
The BSE Sensex of 30 companies has taken a jump of over 484.54 points and reached at its today's highest level at 20,701 with market capitalisation of Rs.30,44,158 crore. However, the index closed at 20,687.88 points. Sensex reached at its yearly highest level at 20706.74 on October 4, 2010.
With higher investments in R&D during 2009-10, several pharma companies have developed strong pipeline. Recently, Glenmark Generics Inc, USA (GGI), a subsidiary of Glenmark Generics Limited (GGL), has been granted final ANDA approval from the United States Food and Drug Administration (US FDA) for pramipexole dihydrochloride tablets and has commenced marketing and distribution of all approved strengths. Further, it has received an exclusive, worldwide license for intellectual property portfolio in the TrkA field from Lay Line Genomics S.p.A (LLG). The licensed assets include BXL1H5 which is a novel monoclonal antibody that binds to TrkA receptors. This represents another first-in-class opportunity for Glenmark and the scrip increased by Rs.6.35 today to Rs.310.15.
Zydus Cadila has received an approval from the US FDA to market losartan potassium tablets (25mg, 50 mg and 100 mg) and losartan potassium plus hydrochlorothiazide tablets (50/12.5mg and 100/25mg) in the the US market. Gaining a significant advantage, Zydus Pharmaceuticals (USA) Inc., launched both products on the very same day after receiving approvals from the US FDA. However, the Cadila scrip declined today by Rs.8.30 to Rs.689.05.