APL receives tentative USFDA approval, stock pierces its previous resistance

Alembic Pharmaceuticals (APL) has received USFDA tentative approval for its ANDA Alogliptin tablets of 6.25 mg, 12.5 mg and 25 mg. The stock of Alembic Pharmaceuticals opened on a positive note with open and low as the same level, indicating optimism throughout the day. The stock is currently trading with 1.4 per cent gains. 

The aforesaid ANDA is therapeutically equivalent to the reference listed drug product Nesina tablets of the same mg of Takeda Pharma of USA. The drug is used as an aide to diet and exercise for improving glycemic control in adults having mellitus, i.e. the type 2 diabetes. Alogliptin tablet holds an estimated market size of 65.6 million dollars for 12 months ended December 2017. Including the current ANDA, Alembic holds 64 final and 14 tentative USFDA approvals.
 
The stock of Alembic had given a multiple point downward sloping trendline breakout at Rs 574 at the start of August 2018. The stock surged up to Rs 664, but witnessed correction for three consecutive weeks, but it bounced back from 50 per cent retracement of the prior upward rally from Rs 414 to Rs 664. Meanwhile, the stock also breached its 100-day and 200-day EMAs on the upside on the daily time frame. On October 16, the stock hit above its prior resistance at Rs 608. For now, volumes and oscillators do not support big momentum. However, the stock should sustain Rs 608 on a closing basis for some more upside.