InvestorQ : Why was the stock price of Glenmark up 30% on Monday June 22?
Mary Joseph made post

Why was the stock price of Glenmark up 30% on Monday June 22?

user profile image
sara Kunju answered.
3 months ago

The stock of Glenmark Pharma surged 31% after it had received Indian regulatory approval to manufacture and market the oral antiviral drug Favipiravir for treating mild-to-moderate COVID-19 infections in the country. This is different from the Remdesivir that is being manufactured and marketed by Cipla, Hetero and Jubilant Life Sciences.

Glenmark has already surged 150% in the last 3 months from the lows of March and this rally on 22 June only added to that euphoria. On Monday, the stock also touched a 52-week high level in the stock market. Its trading volumes were nearly 25 times the normal trading volumes indicating a lot of delivery volumes on the counter on the back of the news.

The drug will only be available for restricted emergency use. That means patients must sign their consent before being treated by the drug.

Favipiravir is also undergoing trials in other countries to test its efficacy as a COVID-19 treatment. Glenmark will market the Favipiravir drug under the brand name FabiFlu and is expected to be priced at around Rs.100 per tablet. Currently, Glenmark is also testing a combination of Favipiravir and Umifenovir as a potential COVID-19 treatment.