Unichem Labs receives tentative nod for ANDA of sitagliptin tablets; stock gains 4%

Share of Unichem Laboratories rose 4 per cent to hit an intraday high of Rs 340.80 on BSE after the company announced that it has received tentative approval for ANDA of Sitagliptin Tablets USP, 25 mg, 50 mg, and 100 mg from the United States Food and Drug Administration (USFDA) for a generic version of Januvia (sitagliptin) tablets, 25 mg, 50 mg, and 100 mg, of Merck Sharpe and Dohme Corp (Merck).

Sitagliptin tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus. The company informed that the product will be commercialized from Unichem's Goa Plant on receipt of full approval.

The stock ended 1.89 per cent higher at Rs 334.00 against the previous close of Rs 327.80 on BSE. The share touched its 52-week high of Rs 1,030 on May 21, 2021, and a 52-week low of Rs 76 on July 10, 2020.

It has delivered 77.8 per cent return in one year and risen 27.4 per cent since the beginning of this year. With a market capitalisation of over Rs 2,300 crore, the share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages.

Recently, the company announced that it has received Tentative Approval for ANDA of Aripiprazole Tablets, USP, 2 mg, 5 mg, 10 mg, 15 mg, 20 mg and 30 mg from the United States Food and Drug Administration (USFDA) for a generic version of ABILIFY (Aripiprazole Tablets) 2 mg, 5 mg, 10 mg, 15 mg, 20 mg and 30 mg of Otsuka Pharmaceutical Co Ltd.

Aripiprazole Tablets are indicated for Schizophrenia, Irritability Associated with Autistic Disorder, and treatment of Tourette's disorder. The company informed that the product will be commercialized from Unichem's Ghaziabad Plant on receipt of full approval.

According to MarketsMojo, the stock is trading at a discount compared to its average historical valuations and has an expensive valuation with a 0.9 Price to Book Value.

Unichem Labs posted a net loss of Rs 0.41 crore for the quarter ended March 2021 as against a net loss of Rs 17.19 crore in March 2020. Net Sales stood at Rs 274.12 crore in March 2021 compared to Rs 320.23 crore in M