Cadila Healthcare on investors’ radar screens

Cadila Healthcare Ltd, quoting at Rs 621.25 on the NSE at closing on Friday, would most likely ‘see an upward trend’ as Zydus Cadila is all set to seek emergency use authorization for its Covid-19 vaccine from the Drug Controller General of India.

 

In terms of financials, for the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3806.40 crore, down -.44 % from last quarter Total Income of Rs 3823.10 crore and up .26 % from last year same quarter Total Income of Rs 3796.40 crore. Company reported net profit after tax of Rs 731.60 crore in the latest quarter.

By Shashank Singh

Cadila Healthcare Ltd, quoting at Rs 621.25 on the NSE at closing on Friday, would most likely ‘see an upward trend’ as Zydus Cadila is all set to seek emergency use authorization for its DNA-plasmid technology-based Covid-19 vaccine from the Drug Controller General of India (DCGI). This would be the first DNA-plasmid vaccine in the world if approved.

Not only this but also the Zydus Cadila’s ZyCoV-D vaccine could also be India’s first vaccine for children aged 12 years and above as the company has conducted trials on the age group.

Government sources have confirmed that the Ahmedabad-based firm may seek an emergency use authorization from the DCGI in around a week. “The data analysis from the phase 3 trials is almost ready. The company may soon seek EUA for its vaccine,” a government official said.

ZyCoV-D is a three-dose vaccine — to be administered at day 0, day 28, and day 56. The firm has said it is also working on a two-dose regimen of this vaccine.

Sharvil Patel, managing director of Cadila Healthcare, had said in April that the firm was working on trials to check if a two-dose regimen also worked. The clinical trials are being conducted on children — 12 years and above.

It is worth mentioning that the stock jumped 70.92% in the last one year as compared to a 52.16% rally in NIFTY and a 40.99% spurt in the Nifty Pharma index. However, during this week Cadila Healthcare Ltd fell for four straight sessions and showed weakness till Friday afternoon.

Cadila’s stock has been on investors’ radar screens since the company started research and development for COVID-19 vaccine and related products. Analysts have expressed that vaccine sales could provide a significant shot in the arm to the company’s domestic formulation segment.

In terms of financials, for the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3806.40 crore, down -.44 % from last quarter Total Income of Rs 3823.10 crore and up .26 % from last year same quarter Total Income of Rs 3796.40 crore. Company reported net profit after tax of Rs 731.60 crore in the latest quarter.

Promoters held 74.9 per cent stake in the company, FIIs held 5.2 per cent, DIIs 11.5 per cent and public and others 8.4 per cent.

Recent events in Zydus Cadila, a part of the Cadila group, also make investors keen to keep the stock on radar.

This week has received tentative approval from the US health regulator to market epilepsy treatment drug Brivaracetam tablets. The drug will be manufactured at the group’s formulation manufacturing facility at SEZ, Ahmedabad.

Last month, it received Emergency Use Approval from the Drug Controller General of India for the use of Pegylated Interferon alpha-2b, ‘Virafin’ in treating moderate COVID-19 infection in adults. The drug is said to reduce the need for oxygen support and is priced at Rs 11,995/dose.

In another development, in May this year, Zydus Cadila launched Ujvira, a drug used for treatment of breast cancer.

“The company has launched Trastuzumab Emtansine, the first antibody drug conjugate (ADC) biosimilar and a highly effective drug for treating both early and advanced HER2 positive breast cancer, under the brand name Ujvira,” Zydus Cadila had said in a statement.

Cadila Healthcare Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 68073.76 Crore) operating in the Pharmaceuticals sector.

(Author, Shashank Singh, is a financial journalist and the opinions expressed in the write-up are his personal views. Author is not suggesting anyone to buy the stock and the write-up is purely for information and education purposes. Anyone buying the stock after reading the write-up will be solely responsible for his profit or loss)

 

 

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