Lupin shares gained on Tuesday after company announced that its Brazil-based subsidiary MedQuímica Indústria Farmacêutica has signed a definitive agreement to acquire all rights to nine medicines from BL Industria Otica Ltd, a subsidiary of Bausch Health Companies Inc.

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The stock was trading at Rs 752.05, up by Rs 18.40 or 2.51 per cent on the NSE.

Brokerage Credit Suisse maintains a ‘Neutral’ rating on Lupin stock with a price target of Rs 800.

Technical expert Simi Bhaumik expects an upside of Rs 25-30 which will open if the stock decisively breaches levels of Rs 759, its November high.   

As part of the transaction, MedQuímica will acquire rights to nine products including Limbitro, Melleri and Dalmador for Central Nervous System related conditions, Bacrocin, Glyquin, Solaquin, Oxipelle and Efurix as topical oncological treatments, and Cuprimine for the treatment of Wilson’s disease.

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After trading in the range over 5-6 trading session, the stock prices went up on Monday by Rs 13 and the rally continued on Tuesday. The stock also benefitted from the overall strength in the pharma sector. The Nifty Pharma index was up 0.48 per cent in the intraday trade with Gland Pharma shares emerging as top gainer.

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Around 26 lakh shares of Lupin were trading around the time of filing of the story. Lupin’s market cap is around RS 34100 crore.

MedQuímica Pharmaceutical Industries, with its factory located in the Industrial District of Juiz de Fora, has been operating for 47 years. In 2015 it became part of the Lupin Group, a global pharmaceutical company, and the fifth largest generics company in the United States by prescriptions and eighth largest company for generic medicine in the world.