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Cadila Healthcare’s market cap at Rs54,795 crore, making it No. 2 pharma company

LiveMint logoLiveMint 07-06-2017 Ravindra N. Sonavane

Mumbai: Cadila Healthcare Ltd has become India’s second-most valuable pharmaceutical company in terms of market capitalisation, beating drug makers like Lupin Ltd, Dr Reddy’s Laboratories Ltd and Cipla Ltd that have much higher revenues.

At 9.50am, Cadila Healthcare’s market cap was Rs54,795.82 crore, while its scrip was trading at a fresh record high of Rs535.40 on the BSE, up 9.18% from previous close. So far this year, it has gained 48%

Sun Pharmaceuticals Industries Ltd continues to be the most valued pharma company in India with a market cap of Rs1.22 trillion.

Cadila stock has started rallying since February after US food and drug regulator cleared its manufacturing unit at Moraiya in Gujarat which got a warning letter from the regulator in December 2015 due to violation of good manufacturing practices.

Cadila Healthcare said in a notice to the BSE on Wednesday that Zydus Cadila got the US drug regulator’s final approval for Mesalamine Delayed-Release tablets. The product will be manufactured at its Moraiya manufacturing facility for the US markets.The company expects that the estimated brand sales for Mesalamine tablets will be $1.15 billion.

Currently, 23 brokerages have a “buy” rating, 13 have a “hold” rating and one has a “sell” rating on Cadila Healthcare’s stock, according to Bloomberg data.

Sun Pharma was trading at Rs508.10 apiece, up 0.7% from its previous close. Lupin was trading at Rs1,155.15, up 0.4%, while its market cap was at Rs52,214.39 crore.

Analysts said the recent fall in share prices of the bigger drug makers were due to pricing pressure and greater scrutiny in the US. So far this year, Sun Pharma has fallen over 19.4%, Lupin 22.3%, Dr Reddy’s Laboratories 17.4% and Cipla 6.4%.

“Once the Indian Pharma companies come up the curve in terms of regulatory compliance, their progress in more lucrative spaces such as complex generics and specialty will be unencumbered, and the sector multiple is likely to re-rate. Quality of pipeline remains crucial,” said HDFC Securities, in a 3 June note to its investors

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