Alembic Pharma shares zoom 5% on USFDA approval for generic drug

Shares of Alembic Pharmaceuticals Limited (Alembic) rose 4.74 per cent to hit an intraday high of Rs 847.95 on BSE after the company announced that it has received final approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Doxycycline Hyclate Delayed-Release Tablets USP, 75 mg, 100 mg, 150 mg, and 200 mg.
 
The stock ended 4.09 per cent higher at Rs 842.70 against the previous close of Rs 809.60. With a market capitalisation of more than Rs 16,500 crore, the shares stand higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.
 
The company informed that the approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Doryx Tablets, 75 mg, 100 mg, 150 mg, and 200 mg, of Mayne Pharma International Pty. Ltd. (Mayne).
 
It added that Doxycycline Hyclate Delayed-Release Tablets are indicated to reduce the development of drug-resistant bacteria and maintain the effectiveness of Doxycycline Hyclate Delayed-Release Tablets and other antibacterial drugs, Doxycycline Hyclate DelayedRelease Tablets should be used only to treat or prevent infections that are proven or strongly suspected to be caused by susceptible bacteria.
 
Doxycycline Hyclate Delayed-Release Tablets USP, 75 mg, 100 mg, 150 mg, and 200 mg have an estimated market size of $10 million for twelve months ending September 2021 according to IQVIA.
 
According to MarketsMojo, the stock is technically in a Mildly Bearish range. Multiple factors for the stock are mildly bearish like MACD, Bollinger Band and KST.
 
Also, the institutional investors have decreased their stake by 0.72 per cent over the previous quarter and collectively hold 16.94 per cent of the company.
 
Alembic has received year-to-date (YTD) 16 approvals (12 final approvals and 4 tentative approvals) and a cumulative total of 155 ANDA approvals (135 final approvals and 20 tentative approvals) from USFDA.
 
Recently, the company made a strategic investment in RIGlmmune Inc., a biopharmaceutical research company cofounded by two prominent Yale University professors.
 
Alembic acquired preferred stock in RIGlmmune amounting to a 19.97 per cent postmoney stake in the first closing of the series seed round that was completed recently.