Aurobindo Pharma Ltd bounced off its 50-day moving average today. Know why

Aurobindo Pharma Ltd., a mid-sized drugs major, bounced off its 50-day moving average after it said one of its generic medicines had won the final approval of the US drugs authority.

As a consequence, Aurobindo said it would be able to manufacture and market Entecavir Tabs for the US markets after the USFDA gave its nod.

Meanwhile, Aurobindo Pharma gained 4.5 percent, or 32.40 rupees, to 756.60 rupees on the National Stock Exchange where 14.9 lakh shares were traded versus the 5-day average of 26.2 lakh shares.

Aurobindo Pharma said the approved abbreviated new drug application (ANDA) is equivalent TO Baraclude Tablets, 0.5mg and 1mg, of Bristol-Myers Squibb. Entecavir tablets are indicated for treatment of chronic hepatitis B virus infection of the liver. The product has an estimated market size of $294 million for the twelve months ending June 2015 in the US, according to IMS.

This is the 44th ANDA to be approved out of Unit VII formulation facility in Hyderabad, India for manufacturing oral non-antibiotic products. Aurobindo now has a total of 209 ANDA approvals from the US Food & Drug Administration

Aurobindo's market capitalisation has fallen 9 percent to 43,271 crore rupees in the past one year. It trades at 7.7 times its book value of 96 rupees.

Image credits: Indiatimes