Ranbaxy Deal – A positive trigger for Alembic Pharma's stock

Alembic Pharma's stock hit a new high of Rs 101.8 on BSE today. The stock has gained 24% in the last four days since the company announced receiving US FDA approval for launching the bio-equivalent version of Pfizer's anti-depressant drug Pristiq and Alembic entering into an out-licensing arrangement with Ranbaxy for exclusively marketing the same.

This approval and the out-licensing deal will provide the much-needed boost to the Baroda-based drug firm. The company's net sales have grown by a marginal 4.5% to Rs 1481 crore and the operating profit increased 10% to Rs 227.5 crore. Thanks to its chronic product portfolio, the company is growing in line with the industry in case of its domestic pharma industry.

According to data from Bloomberg, there are 5 buy recommendations for the company's stock with a target price of Rs 99. The company's stock has hit the target price on Friday.