WOCKHARDT SHARES EXTEND GAINS TO HIT NEW HIGHS; WHAT ASHIKA SAID ON THIS MULTIBAGGER STOCK
Shares of Wockhardt Ltd extended its gains during the trading session on Tuesday as the stock surged another 9 per cent to hit new 52-week highs. The optimism for its forthcoming launch of antibiotic drug Zaynich, which is used to treat cancer patients in the United States, in FY26 continued.
In a release on Friday, Wockhardt announced that it has successfully used Investigational Antibiotic, Zaynich to treat a cancer patient in the US with Chronic Bilateral Thigh Infection Caused by an Extreme-Drug Resistant Pseudomonas. Zaynich is currently undergoing a multi-national Phase 3 study which is expected to support its registration/marketing authorization globally.
Wockhardt said that it will launch Zaynich at a steep discount in the beginning of next financial year. According to some reports, the pharma player is looking to launch this drug at a discount of 85–90 per cent, which is priced around $15,000 (Rs 12.50 lakh) in the US.
Following the reports, shares of Wockhardt surged 9.03 per cent to Rs 898 on Tuesday, hitting its new 52-week highs, with a total market capitalization of close Rs 13,500 crore. The scrip had settled at 823.65 apiece in the previous trading session on Monday, hitting a 20 per cent upper circuit.
Shares of Wockhardt have rallied nearly 350 per cent in the last two years from nearly Rs 200 levels. The stock has rallied about 85 per cent in 2024 so far, whereas its has gained nearly 75 per cent in the last one month. The stock has surged more than 40 per cent in the last five trading session.
Zaynich (WCK 5222), Wockhardt’s lead drug in the pipeline, has been granted a susceptibility breakpoint of 64 mg/L for approximately 10 gram-negative pathogens showing high resistance rates, as announced in the final plenary session of the Clinical and Laboratory Standards Institute (CLSI), said a note from Ashika Stock Broking.
"Zaynich is estimated to have a market potential of $25 billion. India study will be completed by the end of this year/early next year. Approval from DCGI is anticipated by mid CY25. Similarly, phase III study will finish in 1QCY25at the global levels, with filing to the USFDA in 4QCY25, for which the approval is anticipated in 1HCY26," said the broking firm.
Ashika is building a 90 per cent probability of success for the global approval of WCK 522. Upon approval, Wockhardt will use its existing marketing channels in India and market the drug themselves for the domestic market. It is likely that Wockhardt will partner and thus be entitled to upfront & milestone payments, along with a hefty profit share or royalty on sales, it said with an 'overweight' rating on the stock.
Wockhardt raised Rs 480 crore through a Qualified Institutional Placement (QIP) by issuing 92.85 lakh equity shares at Rs 517 per share in March 2024. The stock has rallied nearly 54 per cent from its QIP price. The company plans to expand its portfolio to include biologicals, new insulins, and other diabetic products in the coming months.
2024-07-02T09:15:21Z dg43tfdfdgfd
