Orchid Chemicals & Pharma zooms 16% in early trade on USFDA nod for generic drug

Shares of Orchid Chemicals & Pharmaceuticals zoomed 16 percent in the first few minutes of the opening trade on Thursday, after the company a day before, post the closing hours of trading session, announced receiving the USFDA nod for generic anti-bacterial Gemifloxacin Mesylate tablets. In a release issued to the BSE, the company said the approval was for its abbreviated new drug application (ANDA) for Gemifloxacin Mesylate tablets in the strength of 320 mg with 180 days of generic drug exclusivity. Last week, Orchid Chemicals had received the USFDA nod for its ANDA Rivastigmine Capsules in the strength of 1.5 mg, 3 mg, 4.5 mg, 6 mg. [caption id=“attachment_2300826” align=“alignleft” width=“380”]  Reuters[/caption] At 9.50am, Ochid Chemicals & Pharma stock was traded at Rs 55.50, up 12.5 percent from previous close. Around 6 lakh shares changed hands on BSE so far against the two-week daily average volumes of 1.39 lakh shares. The stock had rallied to a high of Rs 57.40, up 16 percent but came off its highs thereafter. In anticipation of the company getting approval from US drug regulator, the stock witnessed robust performance on Wednesday as well, soaring 9 percent on the back of strong volumes. Effectively, in the two trading sessions, including today’s ongoing trading session, the stock has already soared 25 percent amid strong investor buying interest. Ahead of the rally, the stock in fact witnessed sharp volatility over the past one week. Exactly a week before, the stock had slipped to its one year low of Rs 42.60. From its 52-week low level, the stock has so far gained a whopping 35 percent, taking into account today’s high level so far, in just one week’s time.