Cadila gets US FDA approval for Mesalamine tablets: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research- Pharma, Angel Broking):

"Zydus Cadila, a group company of Cadila Healthcare has received US FDA approval to market Mesalamine tablets in the US. Mesalamine is a generic version of Lialda which is used extensively in the US to treat ulcerative colitis, which is an inflammatory bowel condition and afflicts nearly 7 lakh people in the US. Cadila was the first to file for an Abbreviated New Drug Application (ANDA) for the generic version of Lialda and the market size of the brand in the US is estimated to be nearly $1.15 billion. With this approval coming through, Cadila now has nearly 115 approvals from the US FDA. According to our estimates the company can add around US$60mn and US$20mn in sales and net profit respectively. We maintain that the valuations of the company are rich and more than adequately factoring in the positives well, and today's up move in the stock should be used to book profits."

Shares of CADILA HEALTHCARE LTD. was last trading in BSE at Rs.537.25 as compared to the previous close of Rs. 490.4. The total number of shares traded during the day was 1211121 in over 20166 trades.

The stock hit an intraday high of Rs. 542.4 and intraday low of 491.05. The net turnover during the day was Rs. 638229468.

Source : Equity Bulls

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