In a very weak market, Cadilla Healthcare is holding its steed pretty strong. The stock price rose 4.5% to Rs.386.45 and is currently the second top gainer on the BSE.

Two reasons for this. Firstly, the company announced today morning that it has received the final approval for the generic version of Toprol-XL, Metoprolol Succinate ER (Extended-Release) Tablets. This is used for treating chest pain (angina), heart failure and high blood pressure. Lowering high blood pressure helps prevent strokes, heart attacks, and kidney problems.

This is to be manufactured at the company’s formulations SEZ unit in Ahmedabad.

Those in the industry say that this drug is already being sold in the USA by some 10 companies, which also includes Dr.Reddy’s and Sun Pharma.

The group has now more than 185 approvals and has so far filed over 320 ANDAs since the commencement of the filling process in FY 2003-24.

The second reason is that brokerage house, CLSA put out a report, stating that it has upgraded the stock from ‘Underperform’ to ‘Buy’. It also raised the target price from Rs.440 to Rs.450. CLSA states that better pipeline in USA and India, new launches in USA in 2018 and Cadila’s search for more high-value, specialty drugs makes its prospects look very bright. CLSA expects a compounded annual growth rate of 16% in earnings till FY20.