Glenmark Pharmaceuticals shares jump more than 27% after antiviral drug Favipiravir launch

Analysts expect the launch of two anti-viral drugs to treat Covid-19 patients to benefit Glenmark Pharmaceuticals Ltd. and Cipla Ltd. in short term but subside as competition increases.

 

Glenmark Pharma share price surged 27 percent, hitting upper circuit of Rs 572.70 per share on the BSE, after the pharma company said it received Indian regulatory approval to make and sell oral antiviral drug favipiravir for treating mild-to-moderate COVID-19 infections in the country. Cipla has rolled out Remdesivir, another tablet for Covid-19 patients, and the share price of the company climbed to a 52-week high of ₹696 on Monday before it closed the day at ₹655.

“Favipiravir can be used for coronavirus patients with co-morbid conditions such as diabetes and heart disease with mild to moderate Covid-19 symptoms. It offers rapid reduction in viral load within four days and provides faster symptomatic and radiological improvement...,” Glenmark said.

Agreed Vishal Manchanda, analyst at Nirmal Bang Securities, as he said a total of six companies, including Jubilant lifeSciences, Cadila and Hetero, are developing Remdesvir. There will be more players for Glenmark’s drug as well.
“This is a short-term opportunity, nothing great to count on. Once there will be more competition, this will not be of much benefit,” Surajit Pal, pharma analyst at Prabhudas Lilladher .

“At least three to four others are expected to enter within next 15-30 days in (for selling) Favipiravir, and five to six should enter once DCGI approves Remdesivir. Products will ultimately be sold through institutional channels and pricing would be significantly lower.” research firm Investec said.