Why has there been such a sharp rally in the stock price of Strides Pharma?
Answer
Answer
Strides Pharma hit a 52-week high of Rs.753 on Tuesday and has been among the top performers in the pharma space. The stock rallied 14% in the last one week after it received approval from the USFDA for Butalbital and Acetaminophen tablets to treat headaches.
According to Strides Pharma, the US market size for Butalbital, Acetaminophen and Caffeine tablets is approximately $40 million currently. The stock has already rallied by 77% after it reported solid growth in the Jun-20 quarter.
Strides had reported a strong improvement in profitability in Q1 despite the Ranitidine suspension in Q4. Regulated businesses which account for 80% of total revenues provided strong visibility. Strides also enhanced market share across key markets.