InvestorQ : Glenmark has been very volatile rising 30% one day and falling 5% next day? Do you see the stock as a good buy?
Moii Chavate made post

Glenmark has been very volatile rising 30% one day and falling 5% next day? Do you see the stock as a good buy?

Answer
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Sam Eswaran answered.
4 months ago


Glenmark saw a sharp spike in price on 22 June after it announced regulatory approval to launch an oral antiviral to treat mild to moderate COVID-19. Glenmark was supposed to launch antiviral drug Favipiravir under the brand name Fabi-Flu. These dosages were expected to be priced at around Rs.103 per dosage.

However, analysts feel the euphoria over Glenmark is misplaced as Favipiravir is not like Remdesivir which can be used to treat medium to acute cases of COVID-19. The rally in stocks like Cipla, Jubilant is more understandable for analysts as they are into manufacture of generic versions of Remdesivir. That is not the case with Glenmark.

At this point it does look doubtful if the launch can support such a sharp rally in the stock price of Glenmark. Favipiravir is merely a flu medicine and meant to cure mild to moderate COVID-19 patients and cannot be a game changer for treating the disease. Most analysts are expecting results of Glenmark to disappoint the street and competition to hot up.