The Alembic Pharma stock rose in early trade today after the firm announced its joint venture Aleor Dermaceuticals received approval from USFDA for Lidocaine Ointment USP, 5%. The ointment is used for treating the temporary relief of pain associated with minor burns, including sunburn, abrasions of the skin and insect bites. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Xylocaine Ointment, 5%, of AstraZeneca Pharmaceuticals LP (AstraZeneca).
The midcap stock has gained after two days of consecutive fall and opened 2.23% higher at 572 compared to the previous close of 559.55 on the BSE.
The stock touched an intraday high of Rs 578.70 (3.42%). The Alembic Pharma stock has gained 8% since the beginning of this year and risen 11.73% during the last one year.
It is trading below the 50-day moving average of 582.69 and above 200 day moving average of 555.93.
Five of 15 brokerages rate the stock “buy” or ‘outperform’, eight “hold” and two “underperform”, according to analysts’ recommendations tracked by Reuters.
Quoting IQVIA data, Alembic Pharmaceuticals said Lidocaine ointment has an estimated market size of $97 million for twelve months ending December 2017.
Alembic has a cumulative total of 79 ANDA approvals (66 final approvals and 13 tentative approvals) from USFDA, including this first ANDA approval for Aleor.
Alembic Pharmaceuticals is engaged in developing formulations and active pharmaceutical ingredients (API). The company focuses on anti-infective, analgesic and, cough and cold therapies. It also focuses on therapies, such as cardiology, diabetes, gynaecology, gastrointestinal, orthopedic, dermatology and ophthalmology. Its APIs include independent manufacturing blocks for Macrolides, non-steroidal anti-inflammatory drugs (NSAIDs) and other drugs.