(Image source from: microbiozindia.com)
While the entire world is fighting a respiratory disease causing virus, Cipla bagged an FDA approval for the production of generic inhalers amidst this time of crisis.
The company received the nod for the first generic of a commonly used inhaler during this time of pandemic, especially when the demand for the same has spiked quite significantly.
The Mumbai-based company finally received the seal of approval from the US Food and Drugs Administration for their own abbreviated Albuterol Sulfate Inhalation Aerosol 90 mcg as reported in an exchange filing.
This new drug is a copycat version of the Merck Sharp & Dohme Corp.’s Proventil HFA Inhalation Aerosol that is used for the treatment of a few conditions of bronchospasms and for the prevention of a number of asthmatic symptoms.
Amidst the pandemic, there has been a steep increase in the demand of these albuterol products, said Stephen M. Hahn, who is the U.S. FDA Commissioner.
Umang Vohra, who is the managing director and global chief executive officer at Cipla stated saying that the company has been arranging for the shipments in a staggered manner owing to the crisis that the world is currently under.
On addressing the situation, Vohra said that this approval is going to further cement the brand’s presence in the US market for the better. US has been reported to contribute around 22% of the revenue of the company.
With this new breakthrough, the Cipla shared rose by a staggering 15%, the highest single day rise since January 2005, taking the share value to INR 598.65 a piece.
Investec analyst Anshuman Gupta even stated saying that the approval that Cipla got could actually help benefit and skyrocket their US sales to $20-30 million. The approval was being expected around the second half of 2020-21.
With this approval, Cipla is likely going to profit in two factors, the lack of competition and the sudden rise in the demand owing to the coronavirus pandemic.
By Somapika Dutta