Pharma Stocks Skyrocket Over Rising Demand for Hydroxychloroquine
- 09-Apr-2020 4:00 PM
- Journalist: Timothy Greene
Unprecedented surge in demand for Hydroxychloroquine, an anti-malarial drug that is getting famous as a potential cure for Covid-19, has led to incredible gains in the stocks of Ipca Laboratories and Zydus Cadila, two of the largest drug manufacturers in the world. In the early trade report, the Ipca and Cadila witnessed a gain of 6.1 per cent and 8 per cent respectively, thereby, positively affecting their total turnover. Owing to persistent increase in the number of pandemic cases, the two renowned firms are looking forward to providing Indian government with 100 million HCQ tablets in the current month. Booming demand for HCQ is anticipated to be a silver lining for the pharmaceutical companies who are eyeing to expand their export business in order to widen their profit margins. In addition, external pressure from the U.S. President for lifting the ban on exports to ease the supply of the product has forced the domestic manufacturers to ramp up their production activities. To combat with upsurge in demand, the Indian pharma companies are targeting to increase their production capacities by 5-6 times. The Indian Ministry of External Affairs stated that the two drugs are still under licensed category and their production is being continuously monitored. Hydroxychloroquine (HCQ) is primarily used for the treatment of auto-immune disorders like lupus and rheumatoid arthritis.