In a relatively weaker market, Cipla has managed to rally stocks by 3% up to $10.34, a record high for the pharmaceutical company in the National Stock Exchange (NSE).
The latest rally brings the stock for Cipla up by nearly 10% within a span of two days. The stocks rose from a previous $9.46 two days ago. The growth added some relief to a CNX Nifty market that was declining by 1%.
The stocks started gaining ground after Cipla launched their anti-asthma inhalers in Germany and Sweden. The anti-asthma inhaler is a generic version of Advair, the inhaler made by GlaxoSmithKline Plc. The stock has performed much better than the market itself, by gaining 23% since the 1st of September, which was the day of the inhaler’s launch. The same period saw the benchmark rise by 1%.
An analyst at Prabhudas Lilladher, Surajit Pal, has advised a rating in favor of buying the stock with a target price of Rupees 643.
The pharmaceutical company expects that due to the approval of the generic Advair/Seretide in Germany and Sweden, Cipla will allow larger opportunities for sales in respiratory medications in Europe. The current overall market for respiratory drugs in Europe is estimated to be worth 2.5 billion Euros, with more than 30 million patients under the age of 45 years.
Management in Cipla has expressed optimism regarding multiple launches of their drugs across Europe within the next 12 to 18 months. A report dated at 4th of September, 2014 shows that Cipla may also attempt to guide a launch of inhaler combinations in the large EU market in the second half of the fiscal year of 2015.