Aurobindo Pharma shares scale 52-week high; here is what is driving the stock

Aurobindo Pharma shares scaled a 52-week high on Friday, more than recouping the previous day's losses, after sources said the company received approval to launch the Revlimid drug, used along with other medicines in the treatment of adult patients with multiple myeloma. The stock of the Hyderabad-based pharmaceuticals company jumped by as much as Rs 56, or 6.4 per cent, to Rs 930 apiece on BSE. 

The stock traded in high volumes on the bourse. At 10:40 am, Aurobindo Pharma shares held on firmly to the green, with a gain of Rs 50, or 5.7 per cent, at Rs 924 apiece. As many as 2.2 lakh shares changed hands on the exchange so far on Friday as against a daily average of 29,000 in the past two weeks, according to provisional data.

Revlimid has a market size of Rs 35,000 crore.  

The company is likely to begin sales of the drug next week, sources told Zee Business. They also highlighted that Revlimid is set to be a high-margin product for the company. 

#ZbizExclusive | Aurobindo Pharma के लिए बड़ी खबर

- #AurobindoPharma की दवा Revlimid के लॉन्च को मंजूरी

- Revlimid का मार्केट साइज ₹35 हजार करोड़

- अरविंदो फार्मा को ₹4000-5000 करोड़ की बिक्री का अनुमान@AnilSinghvi_ @VarunDubey85 #StockMarket pic.twitter.com/K6Hj7Hfx7i

— Zee Business (@ZeeBusiness) September 29, 2023

At the time of publishing this report, Aurobindo Pharma was yet to respond to queries emailed to the company seeking confirmation of the news.

According to Zee Business research, Revlimid is estimated to lead to sales to the tune of Rs 4,000-5,000 crore for the company.

In a separate development, the pharmaceuticals company said on Wednesday that its subsidiary, Auro Vaccines, entered a licence agreement with Singapore's Hilleman Laboratories Singapore to develop, make and market a pentavalent vaccine candidate.

Should you buy, sell or hold Aurobindo Pharma shares?

Zee Business Managing Editor Anil Singhvi expects the pahrma stock to reach Rs 1,200-odd levels in a year. His target implies an upside of more than 37 per cent in the stock from its closing price on Thursday. 

Aurobindo Pharma shares: Past performance

Aurobindo Pharma shares have almost doubled so far in 2023 while the headline Nifty index has grown 7.8 per cent.

(This story will be updated shortly)

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