The trial of the oral drug Molnupiravir of COVID-19 has been completed. Its maker Merck (known as MSD outside the US and Canada) has said that efforts are on to get it licensed for emergency use in the US. Corona can be treated at home with this oral medicine. At present, it has to be admitted for treatment with Remdesivir etc.
India Divi’s Laboratories its authorized manufacturer, shares will shine
Divi’s Laboratories is the authorized manufacturer of this medicine by Merck. It is also a partner for Merck’s custom syntheses supplied during clinical trials. So it is expected to benefit a lot from it. It also holds the license to manufacture this drug in India. The company has started preparing the stock of this drug for America and Europe. It wants to prepare 10 million courses of this drug by the end of 2021. HSBC Securities believes that Divi’s Laboratories may have gained momentum in mobilizing the supply of its API. It believes that it may have started preparing to mobilize API for making molnupiravir.
Stock Tips: There is power in the stock of this bank; Know why the reputed brokerage house increased the target price and how much profit will you get?
Target price raised from Rs 5465 to Rs 5750
In view of this preparation to make molnupiravir, HSBC has increased the target price of shares of Divi’s Laboratories from Rs 5465 to Rs 5750. The company’s EPS estimate has also been increased from 0.4 per cent to 4.4 per cent. The brokerage firm says that the reason for the growth of Divi’s Laboratories is clearly understood. The company can also perform well on the cost front. The brokerage firm has given it a BUY rating while increasing its target price.
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