Hikal Ltd develops generic API; stock hits upper circuit

Mumbai-based API manufacturer, Hikal Ltd today informed via a stock exchange filing that it has developed new API which can be used in various stages of testing and treatment of COVID-19.

The company has successfully developed Favipiravir active pharmaceutical ingredient (API) and its intermediates with generic version of Avigan of Fujifilm Toyama Chemical Co. Ltd (Japan). The press release further added that this latest API intermediate has been able to demonstrate activity against influenza viruses. It also received respective approval in Japan for the treatment of novel influenza virus infections. In many countries, it is still in various stages of clinical trials and as an experimental treatment of deadly Coronavirus.

Hikal Ltd derives nearly 66 per cent of revenue share from exports. It has a wide presence in Europe, US and other parts of Asia. Crop protection segment contributes 41 per cent of its total revenue. The stock made headlines few months back when it had received a closure notice for one its plant, owing to some environmental issues. The company, nevertheless, released a statement saying that there was no such closure and its production is undergoing normally.

Soon after the press note was released, the stock price is locked in upper circuit at five per cent, trading at Rs 114.95 on BSE.