Zydus Lifesciences shares jump 5% from intraday low to hit record high; here's why

Shares of Zydus Lifesciences Ltd on Wednesday staged a sharp upmove during late deals. The stock recovered 4.98 per cent from an intraday low price of Rs 1,133.55 to hit an all-time high of Rs 1,190. Zydus Life eventually settled at Rs 1,180.40. At this price, the scrip has gained 69.05 per cent on a year-to-date (YTD) basis.

Today's rise in fag-end trade came after the drugmaker received two separate approvals from the US health regulator. Zydus said it has received final approval from the United States Food and Drug Administration (USFDA) for sacubitril and valsartan tablets.

"Sacubitril and valsartan combination is used to treat chronic heart failure in adults to help reduce the risk of death and hospitalisation. The drug will be manufactured at the group's formulation manufacturing facility in Moraiya, Ahmedabad (India). Diroximel Fumarate Delayed-Release Capsules had annual sales of $5,483 million in the United States (IQVIA MAT May 2024)," it stated in a BSE filing.

Separately, it has secured tentative approval from the USFDA for Diroximel Fumarate Delayed-Release Capsules, 231 mg.

"Diroximel Fumarate Delayed-Release Capsules is indicated for the treatment of relapsing forms of multiple sclerosis (MS) in adults. The drug will be manufactured at the group's formulation manufacturing facility in Ahmedabad SEZ, India. Diroximel Fumarate Delayed-Release Capsules had annual sales of $847.4 million in the United States (IQVIA MAT May 2024)," Zydus said.

The group also mentioned that it currently has 398 approvals and filed over 460 ANDAs so far (Abbreviated New Drug Applications).

Rupak De, Senior Technical Analyst at LKP Securities, said "Zydus Life's stock has given a consolidation pattern breakout on daily timeframe, suggesting a rise in optimism. In the short term, the stock might remain strong with the potential to reach Rs 1,270. Support is placed at Rs 1,144, below which the stock might fall back into consolidation."

Around 45,000 shares changed hands on BSE today. The figure was lower than the two-week average volume of 85,000 shares. Turnover on the counter came at Rs 5.21 crore, commanding a market capitalisation (m-cap) of Rs 1,18,775.86 crore.

As of March 2024, promoters held a 74.98 per cent stake in the pharma company.