Sun Pharma, Dr Reddy’s Lab, Divi’s Lab and other pharma stocks rally on regulator’s nod to make anti-COVID pill

• Pharma company stocks is the only sector gaining in the weak market on Wednesday on optimism to sell anti-covid drugs approved by the drug regulator.
• The pharma regulator gave approval to sell Molnupiravir drug, which is an anti-COVID pill, for emergency use in the country.
• Sun Pharma, Cipla, Torrent Pharma and Strides Pharma have already announced plans to launch their version of this pill soon amid rising spread of Omicron in the country.

Pharmaceutical company stocks were the top gainers in a weak market on December 29 as the segment cheered pharma regulator’s — Drugs Controller General of India (DCGI) — approval of anti-covid pill for emergency use in the country.

The move comes amid rising spread of Omicron cases in the country. Indian companies will manufacture a generic version of Merck's anti-COVID pill Molnupiravir in India.

Molnupiravir is an antiviral medication that is used to treat COVID-19 in those infected. The drug was developed by US-based firms Merck and Ridgeback Biotherapeutics.

The development has brought some optimism for pharma stocks that have been underperforming the market for more than a year.

While Indian companies are manufacturing a generic version from US-based pill, they will market the pill under their respective brands and sell them in pharmacies and COVID-19 treatment centres.

Earlier this year, US-based pharma company Merck had signed non-exclusive voluntary licensing agreements with over eight Indian companies to manufacture and supply generic versions of Molnupiravir in over 100 low and middle-income countries (LMICs), including India.

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