Lupin Drops to Third Spot, As Cadila Becomes Second Most Valuable Pharma Company From India


Cadila Healthcare – pharmaceutical company based in the state of Gujarat, India has recorded its highest value of Rs 537.25 per share owing to several consecutive approvals rewarded by the US regulatory authority for generic drugs. This, further has seen the company reach a market cap of INR 55,000.57 crore.  As a result, Cadila now becomes the second most valuable drug maker in India after Sun Pharma while lupin consequently dropping to the third spot.

However, it still has to cover a long distance before it could overtake Sun Pharmaceutical Industries Ltd, which currently hold a market cap of around INR 1.23 trillion. Cadila’s investors have been encouraged by the US Food and Drug Administration (FDA)’s approval of Cadila’s generic variant of Lialda; a drug used for treating chronic inflammatory bowel disorder. Till now, regulator has only approved Cadila’s generic version of Lialda. Reportedly, the brand Lialda’s market size is valued at $1.145 billion, which was disclosed in April 2017 based on data from IMS Health. According to online sources, brokerage firm IIFL Institutional Equities suggested that the generic variant of Lialda can contribute nearly $150 million to the revenues of Cadila over FY18 and 19.

Moreover, this could provide the much needed impetus to the US business of multiple leading drug makers from India since these companies were going through a sluggish market spell in the country for quite some time.

At the same time, compliance issues and pricing pressure has also impacted the business of several large pharma companies from India in the US. FDA’s approval for Cadila’s Moraiya plant in Gujarat will help the company receive more product approvals. Reportedly, Cadila Healthcare’s shares have increased 51% so far this year. Furthermore, Lialda generic is the second consecutive product that has been given green signal by FDA in a single week from the Moraiya plant. Not to forget, that the plant was issued a cautionary letter by the US FDA last year owing to noncompliance to the norms of good manufacturing practices. The company received US FDA approval for its generic antibiotic levofloxacin injection on 2nd of June.

Reportedly, broking firm India Nivesh has suggested that Cadila is currently the most preferred choice in the pharmaceutical sector, owing to its success in receiving quick approvals in the US market. At present, the company has close to 200 products in the pipeline and filed with the US FDA, including complex generics such as injectables and transdermals.

About Sabyasachi Ghosh 4 Articles
Sabyasachi Ghosh is an experienced market research analyst and consultant, with over six years of experience in end-to-end project management. He has worked at numerous leadership positions and has a vast experience of compiling high-quality market research reports. Sabyasachi is an authoritative voice in the market research sector, and has been cited in top industry publications. He is a travel junkie, and loves to travel far and wide with his friends.

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