Aurobindo Pharma up in the green

It seems to be good tidings for Aurobindo Pharma, all around. First the news which came yesterday – another US FDA approval after the two it had received a week ago. The latest one is for manufacture and marketing of Entecavir Tablets, 0.5mg and 1mg (ANDA 206217). The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Baraclude® Tablets, 0.5mg and 1mg, ofBristol-Myers Squibb.

Entecavir Tablets are indicated for treatment of chronic hepatitis B virus infection of the liver. The product has an estimated market size of US$294 Million for the twelve months ending June 2015 according to IMS.

This is the 44th  ANDA to be approved out of Unit VII formulation facility in Hyderabad, India for manufacturing Oral Non-Antibiotic products. Aurobindo now has a total of 209 ANDA approvals (181 Final approvals including 9 from Aurolife Pharma LLC and 28 Tentative approvals) from USFDA.

This news apart, foreign fund brokerage Citi said that it remained bullish on the stock and said that Aurobindo Pharma was its top pick. It is estimating a 50% upside from current levels. Citi has stated that the newly approved drug, Entecavir will be sustainable for the company and does not see much competition for the same in near future. Thus it expects price erosion & profitability at attractive levels.

All this good news has kept the stock firmly in the green, currently up 4.5% at Rs.775 with an intra day high of Rs.777.80. Its 52-week high is at Rs.832.50.