Bajaj Healthcare share price zooms 10% to new 52-week high on black fungus drug launch – News 24-7 Live News 24-7 Live
Bajaj Healthcare share price zooms 10% to new 52-week high on black fungus drug launch

Bajaj Healthcare share price zooms 10% to new 52-week high on black fungus drug launch

Bajaj Healthcare share price surged as much as 10 per cent to Rs 700, also a new 52-week high, in intraday after the company launched Posaconazole API, which is used in treating Mucormycosis (Black Fungus) infection in Covid-19 patients. So far in the session, a total of 3.78 lakh shares have traded on BSE. Bajaj Healthcare stock has been on a gaining spree and surged nearly 16 per cent so far this week. With the launch of Posaconazole API which is used in treating mucormycosis infection, Bajaj Healthcare has added another strong product to its portfolio leading to its stock price zooming by over 10 per cent today.

“Technically, Bajaj Healthcare stock has entered overbought levels and investors are advised to book partial profits at these levels,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online. Ramachandran advised new investors to re-enter only near Rs 600-605 levels for higher targets of Rs 757 and even Rs 912 in the coming few weeks. Bajaj Healthcare has received approval from FDA Gandhi Nagar, Gujarat (India), to manufacture and market ‘Posaconazole API’ as approved medication for treating Mucormycosis in India and it will commence its commercial production from the first week of June 2021.

Posaconazole is a triazole antifungal agent indicated for treating Mucormycosis patients popularly known as Black Fungus in post Covid complications. The second wave of coronavirus was more aggressive and bigger in number than the first. According to doctors the fungal infection that has emerged during the second wave has been widely linked with excessive usage of steroids and uncontrolled diabetes in coronavirus-positive patients.

More than 11,000 cases of black fungal infection have been reported across the country, prompting state governments to declare it an epidemic. The availability of an effective treatment like Posaconazole will help to relieve the pressure and provide patients with a much-needed and timely treatment option. “We expect the company to benefit from these drugs hugely and will contribute 10-20 per cent of the portfolio as the cases are increasing. It will have a substantial impact on the bottom line in the approaching quarter,” Ashis Biswas at CapitalVia Global Research, told Financial Express

As of now, four states have the majority of Mucormycosis cases. “Several companies have already launched drugs for the treatment of Mucormycosis but there is a shortage of its API. This launch of Posaconazole API will be in good demand in the coming quarter,” Yash Gupta, Equity Research Associate, Angel Broking, said.

Source – FinancialExpress

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