Cipla inhales big and high

Cipla is the top gainer on the BSE currently, up almost 7% at Rs.566, with an intyra day high at Rs.575.20, a new 52-week high. Volumes have surged 2.15 times.

The stock is reacting positively to the news of its launch of Serroflo, its top asthma drug in Sweden and Germany. This is the generic version of Glaxo’s Advair and with the launch, Cipla is expected to gain a stronger foothold in these countries. Serroflo will substantially improve the affordability of Fixed Combinations in Europe and help manage health costs for respiratory treatment. And over the next 12-18 months, it plans to increase its reach across more countries in Europe.  The company plans to soon submit an application to the US FDA for an aerosol version of the same and if this goes through, it could essentially be a game changer for the company. Cipla aims that by 2020, 20% of its sales will come from USA v/s the 9% now.