New drug approval helps Strides Pharma jump 8 per cent intraday

Supportive market sentiment and regulatory approval for the generic drug helped the share price of Strides Pharma Science Limited jump nearly 10 per cent intraday on Friday.

The company informed today that its step down wholly-owned subsidiary, Strides Pharma Global Pte Ltd, in Singapore, has received approval for Ursodiol tablets USP (for power ranging from 250 mg to 500 mg). The approval was received from United States Food & Drug Administration (USFDA). It is the generic version of Urso 250 drugs.

The statement released by the company mentioned that the stated drug has a US market of approximately USD 35 million. This product is supposed to be manufactured at the company’s Bengaluru facility and would be marketed by Strides Pharma Inc in the US market. The company has 126 cumulative ANDA filings with USFDA so far, of which, 88 ANDAs have been approved and 38 are still pending approval. The company reported that its R&D spending in Q1FY21 stood at Rs 24.7 crore.

On the back of regulated markets, the company registered a growth of 22 per cent QoQ. The company also reported healthy operating leverage with 920 bps QoQ EBITDA margin expansion.

At 2.00 pm, its share was trading at Rs 921 apiece, higher by 9.25 per cent on BSE.