Views on Aurobindo Pharma receives USFDA Approval for Entecavir Tablets

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma & IT, Angel Broking)

Aurobindo Pharma receives USFDA Approval for Entecavir Tablets

Aurobindo Pharma has received the final approval from the US Food & Drug Administration (USFDA) to manufacture and market 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, of Bristol-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$294mn for the twelve months ending June 2015 according to IMS. The product has less competition with only Teva Pharma USA and Hetero Labs LTDV. Thus we expect the company to gross sales of US$50mn and around US$25mn in sales and net profit respectively for the company. We remain NEUTRAL on the stock.

Shares of AUROBINDO PHARMA LTD. was last trading in BSE at Rs.754.75 as compared to the previous close of Rs. 743.9. The total number of shares traded during the day was 244935 in over 7713 trades.

The stock hit an intraday high of Rs. 779.4 and intraday low of 746. The net turnover during the day was Rs. 187636820.

Source : Equity Bulls

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