Cipla zooms ~10% as USFDA classifies Goa facility as VAI

31 Oct 2024 , 01:23 PM

Cipla Ltd. shares jumped over 10% in early trade on Thursday after the USFDA classified its Goa facility as “Voluntary Action Indicated” (VAI).

The authority previously re-inspected the Goa plant between June 10 and June 21, 2024, after which six observations were issued.

The VAI designation now clears the way for significant specialised launches, such as the Abraxane generic.

Abraxane, a paclitaxel-based chemotherapeutic medication used to treat cancer, has a market value of more than $700 million. Currently, just one generic player, Sandoz, has obtained permission for October 2024.

Citi, a broking business, stated that Cipla’s Goa factory produces a significant amount of generic Abraxane.

Citi added that with this clearance, the generic Abraxane might be marketed in the current fiscal year, as opposed to earlier predictions of a delay until the fiscal year 2026 – 2027.

The pharmaceutical company’s overall operating income increased to ₹7,051 crore in Q2FY25 from ₹6,490 crore in the same period last year. Aside from that, One India Business experienced 5% year-over-year growth, with the Branded Prescription segment outperforming the market in key Chronic Therapy areas.

At around 1.15 PM, Cipla was trading 9.98% higher at ₹1,559.75 per piece, against the previous close of ₹1,418.25 on NSE. The counter touched an intraday high and low of ₹1,565.95, and ₹1,518.05, respectively.

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