Feb 27, 2009

Matrix Lab gains on WHO approval for a generic drug

26 Feb 2009 | 11:17 Matrix Lab gains on WHO approval for a generic drug

The company made the announcement after market hours on Wednesday, 25 February 2009.

Meanwhile, the BSE Sensex was down 70.31 points, or 0.79%, to 8,832.25.

On BSE, 3,290 shares were traded in the counter. The stock had an average daily volume of 24,909 shares in the past one quarter.

The stock hit a high of Rs 92 and a low of Rs 88.85 so far during the day. The stock hit a 52-week high of Rs 203.60 on 16 May 2008 and a 52-week low of Rs 48 on 25 November 2008.

The mid-cap stock had outperformed the market over the past one month till 25 February 2009, gaining 16.80% as compared to the Sensex's rise of 2.63%. It had also outperformed the market in the past one quarter, rising 82% as compared to the Sensex's 2.38% rise.

The company's current equity is Rs 30.92 crore. Face value per share is Rs 2.

The current price of Rs 90.10 discounts the company's Q3 December 2008 annualized EPS of Rs 9.35, by a PE multiple of 9.64.

The company has received approval from World Health Organization (WHO) for lopinavir/ritonavir tablets. The company's version of this tablet is heat-stable and affordable to distribute and use in warm climates. The drug provides the first affordable protease inhibitor for patients in developing countries.

Lopinavir / Ritonavir tablets are the generic version of Abbott Laboratories' Kaletra tablet. The drug is used in combination with other medications to control human immunodeficiency virus (HIV) infections and is included in the antiretroviral (AVR) class of drugs known as HIV protease inhibitors.

Matrix Laboratories' net profit rose 5.2% to Rs 36.14 crore on 47.3% increase in net sales to Rs 396.13 crore in Q3 December 2008 over Q3 December 2007.

The company manufactures and sells active pharmaceutical ingredients and intermediates. Its products are used in anti-bacterial, anti-fungal, CNS, gastrointestinal, anti-retroviral, anti-virals, anti-depressant and cardiovascular segments.