Aurobindo Pharma is the second best gainer in the Pharma sector. Know why

Aurobindo Pharma Ltd., a mid-sized drugs major, was the second best gainer in the pharma sector on news that one of its medicines had won approval from the US regulator to enable it to begin sales in the world's largest generics market.

Aurobindo Pharma, based in Hyderabad, said it had got the final approval from the US Food & Drug Administration to manufacture and market Raloxifene Hydrochloride Tablets in the 60 mg category. Aurobindo said its drug was the equivalent of Eli Lily's Evista Tablets and that the estimated size for this medicine in the United States was $404 million in the year to June 2015.

As a consequence, Aurobindo gained 15 rupees, or 2 percent, to 779.25 rupees on the National Stock Exchange, where 7 lakh shares were traded versus the 5-day average of 31 lakh shares.

Aurobindo has seen is market capitalisation slip 5 percent in the past one year to 44,000 crore rupees. The stock, a favourite of both investors and traders, is trading 7.9 times its book value of 96 rupees. The company has reported a 27.5 percent compounded rise in its sales over the past five years, mainly on account of higher exports.

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