InvestorQ : Why did the pharma stocks like Reddy Labs, Laurus and Lupin hit new highs on Friday?
Riya Dwivedi made post

Why did the pharma stocks like Reddy Labs, Laurus and Lupin hit new highs on Friday?

Answer
user profile image
shrinidhi Rajan answered.
1 month ago


It must be said that pharma companies were in a literal roll on Friday as the BSE Healthcare index surged by nearly 3% on the back of positive and favorable news flows. Quite a few pharma stocks like Laurus Labs, Reddy Labs, Lupin, Stride and Neuland touched yearly highs.

Both Lupin and Cipla benefited from Perrigo announcing a voluntary recall of its Albuterol sulphate inhalation aerosols in the US due to clogging issues. Since Lupin and Cipla are operating in the same space in the US, it was an automatic boost to both these stocks.

In fact, Reddy Labs hit an all-time high of Rs.5090, gaining 6% in the process after it entered into a settlement deal with Celgene Corp. It may be recollected that Reddy Labs has been roped in by Russia to distribute 100 million of its vaccine doses. Laurus rallied on the back of strong earnings.

Traders were also enthused by the fact that the 1:5 stock split should work in favour of making Laurus more affordable.