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Cipla share price hits record high on DGCI nod to import Moderna vaccine to treat COVID-19; may rally 12% more

Financial Express - Business News, Stock Market News

Technical analysts see a further 12 per cent rally in Cipla stock from the current levels.

Cipla share price hit a new record high of Rs 997.20 apiece in intraday on BSE on Wednesday, after the Drugs Controller General of India (DCGI) approved the firm to import Moderna, a Covid-19 vaccine, with emergency use authorisation in India. The stock has gained over 4 per cent in four days. However, the stock erased all the morning gains, and turned negative, falling half a per cent. Moderna has become the fourth vaccine in India to be given the emergency use authorisation. “Cipla Limited is supporting Moderna, Inc. with the regulatory approval and importation of vaccines to be donated to India. At this stage, there is no definitive agreement on commercial supplies,” Cipla said in response to a media query on vaccine import.

Technical analysts see a further 12 per cent rally in Cipla stock from the current levels. The Moderna vaccine will be delivered as a ready-to-use injectable vaccination that can be stored for seven months at the recommended temperature and for 30 days once the vial is opened. “Technically, though, investors should wait to buy near support levels of 930-940 levels for targets of 1025-1116 in the coming weeks,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.

The company is also among five Indian drugmakers that will jointly conduct a clinical trial in the country for Merck & Co’s experimental anti-viral drug to treat mild COVID-19. “This was the major factor which drew investors’ interest and helped the stock post a spectacular rally,” Likhita Chepa, Senior Research analyst at CapitalVia Global Research, told Financial Express Online.

In a separate BSE filing, Cipla along with Dr Reddy’s Laboratories, Sun Pharmaceuticals Industries, Emcure Pharmaceuticals and Torrent Pharmaceuticals announced that the five companies will collaborate for the clinical trial of the investigational oral antiviral drug Molnupiravir for the treatment of mild COVID-19 in an outpatient setting in India.

As per the directive of the Subject Expert Committee (SEC) of the Central Drugs Standard Control Organization, Dr. Reddy’s will conduct the clinical trial using its product, and the other four pharma companies will be required to demonstrate equivalence of their product to the product used by Dr. Reddy’s in its clinical trial. On successful completion of the clinical trial, each company will independently approach the regulatory authorities for approval to manufacture and supply Molnupiravir for the treatment of COVID-19 in India. Molnupiravir is an oral antiviral that inhibits the replication of multiple RNA viruses including SARS-CoV-2.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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