Lupin stock rises nearly 3% after US FDA approves Allopurinol tablets

Lupin Share Price: Lupin shares gained momentum at the morning trading session on Monday (December 18, 2023) as the company got approval from the US FDA for two of its medicines which will be used in diabetes treatment. 

The Lupin stock was trading higher by 2.93 per cent, or Rs 36.50, at Rs 1282.15 at 9:38 am on Monday. The company's market cap at the time of writing this news stood at Rs 58,322.45 crore. 

"Global pharma major Lupin Limited (Lupin) today announced that it has received approval from the United States Food and Drug Administration (U.S. FDA) for its
Abbreviated New Drug Application for Allopurinol Tablets USP, 100 mg and 300 mg to market a generic equivalent to the reference listed drug (RLD), Zyloprim Tablets, 100 mg, and 300 mg, of Casper Pharma, LLC," said Lupin in a statement. 

The product will be manufactured at Lupin’s Pithampur facility in India.

The market size for both the tablets is estimated to be Rs.730 crore. 

The medicines will be used for adult patients with signs and symptoms of primary or secondary gout (acute attacks, tophi, joint destruction, uric acid lithiasis, and/or nephropathy), among other treatments.

What analyst says about Lupin stock

Zee Business analyst Varun Dubey has recommended buying the Lupin stock. He has given the target of Rs 1280 with stop loss at Rs 1235.

Nifty Pharma Index 

The Nifty Pharma index was higher by 1.44 per cent, or 233.65, at 16413.45 at 11:31 am on Monday.

The index's rise in the one month has been 3.84 per cent.

It has soared by 23.74 per cent in the six months and 30.77 per cent year to date.

The benchmark Nifty 50 index, meanwhile, has jumped by 9.03 per cent in the one month; 14.49 per cent in the six months, and 18.00 per cent year to date.