Cadila Healthcare: Street eyeing new covid drug approval, vaccine launch
- India sales remain strong, with domestic formulations marking a strong 21% year-on-year growth, helped by speciality business and covid portfolio during Q3
MUMBAI: Cadila Healthcare Ltd has remained in focus because of its strong portfolio of drugs to treat covid-19. In a latest, the company is seeking approval for its hepatitis drug Pegylated Interferon for treating covid, after promising interim results from Phase III clinical trials.
The drug once approved can be a fresh arsenal in company’s covid portfolio, along with its Remdesivir. The company had earlier benefitted from Hydroxychloroquine (HCQ), which was indicated for emergency use in covid treatment. With one of the largest manufacturing capacities for HCQ in India, Cadila was a key beneficiary, along with IPCA Ltd.
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2 min read . 07:45 AM ISTIn addition, the company is developing a indigenous vaccine for covid-19, and the Street is awaiting news around that. The vaccine approval can drive significant re-rating for Cadila, say analysts.
Analysts at Motilal Oswal Financial Services see the vaccine opportunity as a potential medium-term trigger. They remain positive on Cadila on account of its strong ANDA pipeline, comprising injectables, NCE portfolio, and outperformance in the domestic formulations market.
A pickup sales in the US is also being monitored by market, especially after the tepid performance in Q3. For January-March, analysts don’t expect much traction in US sales looking at limited new product launches. But, in a positive, Cadila plans to launch 40 plus products, including 8-10 complex offerings, in FY22. It is also developing a portfolio of New Chemical entities (NCE), that can help drive forward growth prospects.
India sales remain strong, with domestic formulations marking a strong 21% year-on-year growth, helped by speciality business and covid portfolio during Q3. The company’s domestic growth during January and February too was ahead of the industry average, providing encouragement.
Notably, the company’s consumer wellness business--housed under a separate listed company Zydus Wellness--is also seeing good traction. This is led by strong brands as Sugar-Free, Nutralite, and Everyuth along with Complan, Glucon-D, Nycil.
All this has meant that the Street is optimistic about Cadila’s business prospects. The stock gained more than 2% in early deals on Tuesday.
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