Currently, the only sector which is in the green is the pharma and that partly explains why Cipla, despite taking a beating in its Q4FY20 earnings, is the top gainer on the BSE.
The stock, which had closed on Friday at Rs.570.20, opened almost flat at Rs.570.45 but from there, jumped to an intraday high at Rs.593.60.
For the March quarter, it posted a 33% (YoY) decline in its consolidated net profit at Rs.246 crore on a 1% drop in revenue at Rs.4376 crore.
Operating profit fell 33% at Rs.652 crore. More importantly, it registered a 12% growth in its domestic business in the March quarter.
Two days ago, the company announced plans to raise up to Rs3,000 crore through sale of equity shares or equity linked instrument.
Prior to that, it was among the five generic companies with which Gilead Sciences Inc has signed non-exclusive voluntary licensing agreements to manufacture remdesivir for distribution in 127 countries.
Cipla is also the sole agent of Roche’s anti-inflammatory drug Actemra in India, which can be used on patients with severe lung problems. It is one of the possible treatment options being explored for Covid-19 in addition to Remdesivir, Favipiravir, and Lopinavir/Ritonavir. The drug is currently undergoing clinical trials worldwide.
And today morning, it announced submission of an Abbreviated New Drug Application (ANDA) for Fluticasone propionate and Salmeterol inhalation powder to the US FDA. Company had recently announced the successful completion of its Phase-3 clinical end-point study for the product in the first attempt.
So more than the March earnings, the market is of the perception that Cipla is more geared to meet the challenges of the Covid treatment and that in current times, is a huge positive.