This news turns out to be a lucky charm for Morepen Laboratories; read to find out more!

The stock of Morepen Laboratories has jumped over 4 per cent in otherwise a dull market as the headline indices are seen oscillating in the red and green territory.   

The stock is up by nearly 5 per cent on a WTD basis and the volumes of the current week have already surpassed its prior week’s volume and are highest since mid-September.   

So, let’s know what has turned out to be a good luck charm for this stock that it outperformed the headline indices. The news is that the company has received USFDA approval for its anti-allergy drug - Fexofenadine Hydrochloride, which is marketed in India under the popular brand name - Allegra, among others. Besides, it’s the blockbuster drug of the innovator company - Sanofi Aventis, France. Fexofenadine is the most widely used, second-generation antihistamine drug for the treatment of allergy symptoms and hay fever.   

The company has tied up for regular supplies of Fexofenadine with one of its top US customers, with which, the company has long-standing relations lasting over two decades. The company has already supplied validation quantities while the regular commercial supplies would start after the approval of validation batches. Fexofenadine is a very established anti-allergy drug with market size of around 700 MT and is expected to give immediate impetus to the company’s export business.  

Morepen is the third-largest exporter of this drug to the world and will move up in the ranks after this approval. The export of Fexofenadine to the highly-regulated US market is expected to see multi-fold growth, resulting in better profitability margins for the company.  

Fexofenadine is among the top five leading products of the company and is the fourth anti-allergy drug in Morepen’s product basket, in addition to Loratadine, Desloratadine & Montelukast.