The scrip prices of two mid-sized domestic pharmaceutical
companies Divi's Labs and Matrix Laboratories
have crossed the stock prices of India's leading pharmaceutical
corporates such as Ranbaxy Laboratories, Dr Reddy's and
Cipla, which are trading at over Rs 1,000 per share on
the Bombay Stock Exchange (BSE).
scrip of Divi's Labs touched an all-time high of Rs 1,475
on 24 December, registering a growth of 290 per cent since
June this year. The scrip was quoting at Rs 378 on the
BSE in the beginning of June 2003.
Matrix Laboratories has registered a growth of 168 per
cent in the last six months with the scrip zooming to
a high of Rs 1,447. Both these scrips are currently trading
higher than the pharmaceutical majors Ranbaxy at
Rs 1,066.85, Dr. Reddy's at Rs 1,414 and Cipla at Rs 1,266.60.
is the fist time that the scrips of mid-sized pharmaceutical
companies are trading above the leading and fundamentally
strong pharmaceutical corporates.
to pharmaceutical analysts, though Matrix is following
the business model of Ranbaxy and Dr Reddy's, its is restricted
to just off-patent active pharmaceutical ingredients or
bulk drugs and not aspiring to sell their own formulation
in the overseas market.
V L N Sastry, country head, Firstcall India, equity advisors,
says Matrix has so far filed seven drug master files (which
prove bio-equivalence of their products to a generic product)
for approval to sell its products in the US market. These
include Pfizer's $1.1-billion anti-fungal drug fluconazole.
The company also has the patented version of the $1.5-billion
Citalopram, an anti-histamine drug. Citalopram went off
patent in Europe 2002.
Divi Labs is mainly focused in contract research on process
development particularly for advanced intermediates for
discovery compounds for clients. Divi's is particularly
working on specialisation in custom synthesis, he says.