Cipla shares hit NEW HIGH as DCGI approves to import Moderna’s Covid vaccine – check what analyst suggests for the stock investors

As Drugs Controller General of India (DCGI) allowed Cipla to import Moderna’s Covid-19 vaccine, the shares of the pharma major hit a new 52-week high of Rs 997.20 after rallying almost two per cent on the BSE intraday trade on Wednesday. The stock has surged around four per cent since Monday. 

Cipla was the most gaining stock today at the market open. However, at around 12:00 pm, the scrip is trading near half a per cent down to 974.85 per share, as against 0.54 per cent rise in the S&P BSE Sensex A combined 2.3 million shares changed hands on the counter on the NSE and BSE so far. 

In the last five sessions, the stock has jumped near five per cent, while it soared over 22 per cent alone in the month of June. 

The market analyst Simi Bhaumik recommends to buy Cipla only at a dip around Rs 955-965 apiece levels for a target above Rs 1000 per share in next few sessions with a support of Rs 970 per share. 

Explaining the chart. She says a black candle has been formed on chart, wherein the stock opened at Rs 992 per share, touched new high but couldn’t sustain it, she terms it inauspicious.  

The pharma heavyweight in response to media queries on vaccine import said, "Cipla is supporting Moderna Inc. with the regulatory approval and importation of vaccines to be donated to India. At this stage, there is no definitive agreement on commercial supplies.”  

Similarly, the company in a separate filing to exchanges said, Cipla along with Dr Reddy’s Laboratories, Sun Pharmaceuticals Industries, Torrent Pharmaceuticals and Emcure Pharmaceuticals will collaborate for the clinical trial of the investigational oral anti-viral drug Molnupiravir for the treatment of mild COVID-19 in an outpatient setting in India. 

Molnupiravir is an oral antiviral that inhibits the replication of multiple RNA viruses including SARS-CoV-2. It is presently being studied by MSD, through a collaboration with Ridgeback Biotherapeutics, in a Phase III trial for the treatment of non-hospitalized patients with confirmed COVID-19 globally.