Cipla and Lupin are having a fantastic day on the bourses today. The stock price of Cipla surged almost 6.5% to Rs.799.80, not too far from its 52-week high at Rs.814.45. Lupin, on the other hand, hit a new high today at Rs.1111.40 and continues to trade around the same levels. Both the stocks are intermittently among the top five gainers on the BSE since opening bell.
One man’s loss is another’s gain –Perrigo Company yesterday said it's voluntarily recalling albuterol sulfate inhalation aerosols over concerns that some may not dispense properly due to clogging. The Dublin-based maker of over-the-counter and generic health products already halted production and distribution of the aerosols.
This is used for the treatment of acute episodes of bronchospasm or prevention of asthmatic symptoms.
Lupin and Cipla are makers of albuterol sulfate inhalation aerosols; in fact Lupin got the US FDA approval for the same in August.
Perrigo might resume production once it resolves its problems but for now, this is a huge market for Lupin and Cipla. Fund houses expect a shift of almost $30 million worth of revenues over the next six months to the two Indian companies.