The stock of Aurobindo Pharma surged almost 7 per cent and touched its two-month high last Thursday.
This was thanks to the company receiving final approval from the US Food & Drug Administration to make Sevelamer Carbonate oral suspension, a generic version of Genzyme’s Renvela oral suspension, prescribed for patients with chronic kidney disease.
The approved product has an estimated market size of $140 million in the US.
Aurobindo Pharma is the first generic company to receive generic approval for Sevelamer from the regulator while companies, including Lupin, Cipla and Actavis, have filed for the product.
There will be limited competition for Aurobindo in the generic space for Sevelamer in the near term as most peers have indicated a FY-19 timeframe for approval. The stock had rallied post after announcement of its March 2017 quarter results.
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