Cipla Shifts Remdesivir Production To Goa Plant; Stock Prices Jump 8.09% In A Week

Cipla reported a 26.58 per cent rise in its consolidated net profit to Rs 566.04 crore on strong sales in Q1

MUMBAI, INDIA - MARCH 3: A technician works at a Cipla laboratory March 3, 2002 in Vikhrohi, Mumbai, India. Cipla, the second largest pharmaceutical company in India, has copied the formulas of AIDS medications from large western pharmaceutical companies and is now producing low-cost drugs like Neviraprane that prevent transmission of the HIV virus from mother to child, making it affordable for third world countries. (Photo by Jean-Marc Giboux/Getty Images)

New Delhi: In view of the rising coronavirus cases in India, Cipla Ltd has started production of remdesivir at its plant in Goa to meet the demand for the covid-19 drug as per the company.  In an interview with the business daily Mint, Cipla’s chief financial officer Kedar Upadhye has revealed about ramping up the production of the medicine. However, Upadhye, did share any information about the current capacity for remdesivir and the amount it aims to ramp up. But the supply gap is expected to narrow down with more Indian companies launching the licensed generic version of remdesivir. The drugmaker’s total capacity to produce such injections is 8.6 million units per annum, as per the company’s latest annual report. Earlier the company has given the contracted manufacturing to Daman-based Sovereign Pharma, which had the capacity to supply 50,000 to 95,000 vials of the injectable per month, as per the release by the contract manufacturer. Gilead Sciences Inc, which created the drug signed licensing agreements for remdesivir with seven companies in India including Cipla, Jubilant Life Sciences Ltd, Mylan and Hetero Drugs Ltd. Cipla has priced the intravenous drug lowest at ₹4,000 per vial. Meanwhile, Cipla share price jumped over 6 per cent on Monday after the firm reported a 26.58 per cent rise in its consolidated net profit in June quarter. On BSE, Cipla shares rose 6.64 per cent in early trade to touch 52 week high of Rs 777 against previous close of Rs 728.60 on BSE. As per India Today report, Cipla stock price has risen 8.09 per cent in a week, 20 per cent in a amonth while 60.52 per cent since January. Cipla reported a 26.58 per cent rise in its consolidated net profit to Rs 566.04 crore on strong sales in Q1. The company posted a net profit of Rs 447.15 crore in the corresponding period of the previous fiscal.