Cadila Healthcare and Ipca Laboratories stocks surged in early trade today after government removed restriction on export of Hydroxychloroquine to meet the growing demand for the anti malaria drug from US and other countries to treat coronavirus patients.
Ipca Laboratories, Zydus Cadila and Wallace Pharmaceuticals are major pharma firms manufacturing Hydroxychloroquine in India.
While Cadila Healthcare share price rose up to 8% to Rs 378 compared to the previous close of Rs 349.95, IPCA Labs stock gained 6.11% to Rs 1,714 against previous close of Rs 1,615 on BSE. Total 5.04 lakh shares of Cadila were traded amounting to turnover of Rs 18.24 crore. Turnover for IPCA Labs amounted to Rs 5.63 crore after 0.34 lakh shares changed hands on BSE.
Cadila share price has gained 41% since the beginning of this year and 4.88% during the last one year. Ipca Lab price has gained 43% since the beginning of this year and 74.59% during the last one year.
The government said on Tuesday it would allow some exports of hydroxychloroquine after US President Donald Trump urged New Delhi to release supplies of the drug seen as a possible treatment for COVID-19. After Trump stated that the US could "retaliate" if India does not release stocks of the drug, Indian officials said exports of hydroxychloroquine and paracetamol will be allowed depending on availability of stock after meeting domestic requirements and existing orders.
Officials said India would export the drug on a case-by-case basis after meeting all the domestic requirements. On March 25, India had banned export of HCQ and added it to a list of more than two dozen APIs that can no longer be exported. India is the largest exporter of the drug.
By Aseem Thapliyal