Ranbaxy is on a healthy dose of green today. From yesterday’s close of Rs.471.75, the stock opened today at Rs.492.40, hit an intra day high at Rs.510.45, a new 52-week high.

The stock has jumped up to a new high after the US FDA yesterday approved Diovan, its generic blood pressure drug. Under this, it will enjoy 180 days of exclusive marketing opportunity.

Research report from HSBC has stated that during this period, Diovan will help the company earn around $200 million during this 6 month period, even if it offered a 40-50% discount. But this report was put out in January, much before its Toansa unit was barred from shipping to US. This now means, the company will have to get the API from outside, which in turn will eat away part of Ranbaxy’s earnings from Diovan. Nevertheless, it is after a long time that good news flows into Ranbaxy; looks like the ‘sun’ is rising on this company after a long spate of darkness.