Pharma stocks with swine flu panacea jump

MUMBAI Tue Aug 11, 2009 4:53pm IST

People wearing masks wait in a queue for a H1N1 flu screening at a hospital in New Delhi August 11, 2009. REUTERS/Fayaz Kabli

People wearing masks wait in a queue for a H1N1 flu screening at a hospital in New Delhi August 11, 2009.

Credit: Reuters/Fayaz Kabli

Related Topics

MUMBAI (Reuters) - Shares of Indian drug firms that make the generic version of Roche's Tamiflu, used to treat H1N1 flu, rose 5-19 percent on Tuesday as the death toll from the pandemic in the country rose to eight.

The Health Minister Ghulam Nabi Azad said on Monday more than 850 people had so far tested positive for the virus, with about 340 under treatment and the rest discharged from hospitals.

Ranbaxy Laboratories, Strides Arcolab and Cipla have all expressed readiness to meet the expected demand for oseltamivir, sold under the brand name Tamiflu.

While Ranbaxy, Strides and Natco Pharma rose 5-19 percent, Cipla closed 0.5 percent lower after rising as much as 3.3 percent in the day.

"It is a sentimental impact," said Sarabjit Kour Nangra, vice president-research, pharmaceuticals, at Angel Broking. "This is unlikely to sway too much the profitability picture of these companies."

A dealer, declining to be named, said the shares were unlikely to stay up for more than a couple of days.

The government's plan to stockpile 20 million dosages of Tamiflu drug will benefit Ranbaxy, Cipla, Strides and unlisted Hetero, but will have no significant impact on their earnings, said another pharmaceutical analyst, declining to be named.

Ranbaxy, majority-owned by Japan's Daiichi Sankyo, produces oseltamivir bulk drugs and formulations and can provide close to a million capsules in the next few weeks to the domestic market, Ranbaxy's president Ramesh Adige said in a statement.

The H1N1 virus, commonly known as swine flu, emerged in April in the United States and Mexico, and has spread globally.

The World Health Organisation has said the H1N1 swine flu is unstoppable and has given up on trying to get a precise count of cases.

(For more news on Reuters Money click in.reuters.com/money)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Adani Project

Adani Project

Australia approves Adani's $16 bln Carmichael coal project  Full Article 

India-U.S. Talks

India-U.S. Talks

Kerry to woo Modi's India, but quick progress unlikely  Full Article 

Paring Debt

Paring Debt

Jaiprakash to sell hydro plants to Reliance Power  Full Article 

Nifty Falls

Nifty Falls

The broader index hits lowest in nearly a week on profit taking  Full Article 

Mideast Conflict

Mideast Conflict

U.N. Security Council calls for humanitarian ceasefire in Gaza  Full Article 

Market Eye

Market Eye

Foreign investors prefer Indian cyclicals, utilities - Macquarie  Full Article 

Debt Investment

Debt Investment

India's FII debt limit hike credit-positive, says Moody's  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage