Cadila Healthcare stock hits lifetime-high on Covid-19 Vaccine approval

Cadila Healthcare share price: Zydus has received Emergency Use Approval from DCGI for the use of Pegylated Interferon alpha-2b, ‘Virafin’ in treating moderate COVID-19 infection in adults. Sharekhan says that Cadila Healthcare is in a sweet spot as the company’s business in its two key geographies is expected to gain traction. Cadila Healthcare share price today is Rs 576.5, up Rs 24 or 4.3%. Cadila Healthcare share price moved from Rs 503.5 to Rs 576.5 in the last 1 week.

In a statement released to the BSE, Zydus Cadila today announced that the company has received Restricted Emergency Use Approval from the Drug Controller General of India (DCGI) for the use of ‘Virafin’, Pegylated Interferon alpha-2b (PegIFN) in treating moderate COVID-19 infection in adults. A single dose subcutaneous regimen of the antiviral Virafin will make the treatment more convenient for the patients.

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Cadila had approached the Drug Controller General of India (DGCI), seeking an emergency approval for its COVID-19 vaccine, after interim results showed improved efficacy levels. The approval of the vaccine is set to open up substantial opportunities for Cadila across markets as the company has already received orders in excess of its capacity.

The company statement added that when it is administered early on during COVID, Virafin will help patients recover faster and avoid much of the complications. Virafin will be available on the prescription of medical specialist for use in hospital/institutional setup.

The company also said that in the multicentric trial conducted in 20-25 centers across India, Virafin had shown lesser need for supplemental oxygen, clearly indicating that it was able to control respiratory distress and failure which has been one of the major challenges in treating COVID-19. The drug has also shown
efficacy against other viral infections.

Dr. Sharvil Patel, Managing Director, Cadila Healthcare Limited said “The fact that we are able to offer a therapy which significantly reduces viral load when given early on can help in better disease management. It comes at a much-needed time for patients and we will continue to provide them access to critical therapies in this battle against COVID-19.”

Moreover, opening up of vaccination for everyone above 18 years of age by the Government of India points at strong demand for the vaccine and Cadila Healthcare could be one of the likely beneficiaries of this said Sharekhan. It expects sales and PAT to stage an 8.4% and 20.3% CAGR, respectively, over FY2020-FY2023E.