Shares of pharma major Cipla soared 15% to hit a fresh 52-week high on Thursday as the US Food and Drug Administration (USFDA) granted approval of this generic albuterol sulfate inhalation aerosol to the company.
USFDA added it recognised the need for a drug like 'Albuterol Sulfate' during COVID19.
With this, Cipla would be the first firm to sell the generic version of the drug.
Cipla shares opened with a gain of 10% and later climbed 15% to a new 52-week high of Rs 589.95 on BSE against the last closing value of Rs 513.
Cipla is trading higher than 5, 20, 50, 100 and 200-day moving averages. The stock has risen 38.56% in the one week, 35% in one month, 20% since the start of the year.
"The FDA recognizes the increased demand for albuterol products during the novel coronavirus pandemic," said FDA Commissioner Stephen M. Hahn, M.D. "We remain deeply committed to facilitating access to medical products to help address critical needs of the American public", the filing from FDA stated.
Cipla said that the drug is used for the treatment of acute episodes of bronchospasm or prevention of asthmatic symptoms.
Umang Vohra (MD and Global CEO, Cipla Limited) said," Albuterol is the first generic metered dose inhaler of Proventil HFA Inhalation Aerosol ever approved by FDA in the US and Cipla's first device-based inhalation product in the market."
The entire Albuterol Sulfate HFA Inhalation Aerosolmarket had US sales of approximately $2.8 Billion for the 12-month period ending February 2020, as per the filing.