Zydus Cadila received approval from the US health regulator, FDA, to start clinical trials for its drug Desidustat. This drug is used to treat chemotherapy-induced anaemia, in the case of patients undergoing cancer treatment. Desidustat is currently undergoing phase-III trials for treating anaemia in chronic kidney disease patients.

Zydus Cadila mentioned the same in a regulatory filing. It is expected to initiate clinical trials of Desidustat shortly. According to Cadila, this is a serious unmet medical need. The news flow is likely to be positive for the stock but it has not been able to make a real dent on the COVID front and that is what is really driving valuations of Indian pharma companies.