Multibagger stock! Wockhardt shares rally 16% to hit new 52-wk high; here's why

Shares of Wockhardt Ltd extended their gains during the trading session on Monday to hit its new-52 week high amid the reports that the pharma player is likely to launch antibiotic drug Zaynich, a drug used to treat cancer patients in the United States, at a steep discount in next the beginning of next financial year.

 

The homegrown drugmaker also said research and trials on the antibiotic Zaynich are progressing satisfactorily, and it is aiming for an early FY26 launch.  According to the company, it is eyeing to launch Zaynich at a significant discount of 85–9 per cent, which is priced around $15,000 (Rs 12.50 lakh) in the US.

 

Zaynich has a market potential of $25 billion, the Mumbai-based company's founder chairman Habil Khorakiwala told PTI. The company has invested over $500 million on its research efforts till now, which have yielded six successes, including Zaynich which are at different levels of development and marketing.

 

Following the reports, shares of Wockhardt surged 15.94 per cent to Rs 795.80 on Monday, hitting its new 52-week highs, with a total market capitalization of more than Rs 12,000 crore. The scrip had settled at 686,40 apiece in the previous trading session on Friday.

 

Shares of Wockhardt have grown nearly four times in the last two years from nearly Rs 200 levels, while it has zoomed about 275 per cent from its 52-week low at Rs 213.25 hit in October 2023. The stock has rallied about 70 per cent in 2024 so far, whereas it has gained nearly 30 per cent in the last one month.

 

Wockhardt raised Rs 480 crore through a Qualified Institutional Placement (QIP) by issuing 92.85 lakh equity shares at Rs 517 per share in March 2024. The stock has rallied nearly 54 per cent from its QIP price. The company plans to expand its portfolio to include biologicals, new insulins, and other diabetic products in the coming months.