Shilpa Medicare hits upper circuit post UK regulator nod

Shares of Shilpa Medicare Ltd were locked in an upper circuit on Tuesday after the company announced that its subsidiary has received approval for anti-cancer drug Imatinib from UK Medicines and Healthcare products Regulatory Agency (MHRA).

The approval of Imatinib oral solution represents a major step forward in the treatment options for cancer in paediatric and geriatric patients as well as patients with swallowing difficulties. It also offers dose titration across the patient population, the company said in its BSE filing. The drug is the only approved product which facilitates accurate dose titrations and avoids unnecessary overdosing due to fixed doses, 100 mg and 400 mg, in the presently available marketed tablets.

The company said that the drug was expected to be available in the UK in the second quarter of 2020 and would be supplied from its UK-based manufacturing facility LM Pharmaceuticals. Imatinib oral solution is expected to have patent protection until 2038.

According to IQVIA MAT Q4 2019 data, the worldwide market is approximately $1.6 billion and in the UK, it is approximately US$ 104.4 million.

Shilpa Medicare produces and exports active pharmaceutical ingredients, fine chemicals, intermediates, herbal products, and speciality chemical products.

Reacting to this announcement, the stock of Shilpa Medicare locked at its upper circuit of five per cent and thereby, trading was suspended at Rs 282.95 per share, up by 4.99 per cent or Rs 13.45 per share. The stock’s 52-week high is Rs 538.75 and the 52-week low is Rs 190.80 on BSE.