Cadila Healthcare share price surges 8% as DGCI approves indigenous ZyCov-D covid vaccine – check target price here

Amid approval of ZyCov-D covid vaccine, the shares of Cadila Healthcare jumped almost 8 per cent to Rs 576.25 per share on the BSE intraday trade on Monday. The majority of the brokerages, however, are divided on the stock price of pharma major either with sell, buy or equal-weight rating.

The drugmaker on Friday (August 20, 2021) has received an Emergency Use Authorisation (EUA) from the Drug Controller General of India (DCGI) for ZyCoV-D. 

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This is the world’s first and India’s indigenously developed DNA-based vaccine for COVID-19 to be administered in humans including children above 12 years of age and adults.

The vaccine has to be administered in three doses – the first dose, and the remaining doses after 28 and 56 days. ZyCov-D of Cadila Healthcare is the sixth Covid Vaccine to approved in India.

CLSA believes, the recent stock price correction in Cadila Health offers an attractive entry point and it upgrades a buy rating to a target price of Rs 650 per share. The brokerage says multiple long-term drivers should help it post double-digit core growth in FY23.

While Citi estimates first full-year revenue and profit of $420 million and $150 million from ZyCoV-D, for Cadila Healthcare. The brokerage maintains a sell rating with a target price of Rs 490 per share. The brokerages mention ZyCov-D NPV at Rs 30 per share included in target price.

The launch of ZyCov-D should be a meaningful opportunity for Cadila Health as adoption picks up in ensuing months, says Morgan Stanley, and has an Equal-weight rating with a target of Rs 664 apiece. 

Similarly, Zydus Cadila gets 180-day exclusivity for Tofacitinib extended-release 22 mg tablets, announces final approval from the US food and drugs administration (USFDA).

The stock at around 11:30 am was trading 2.32 per cent higher to Rs 547.6 per share on the BSE, as compared to a 0.34 per cent rise in the S&P BSE Sensex on Monday.