Strides Pharma's Unit Gets U.S. FDA Tentative Nod For HIV Drug; Stock Hits 21-Month High

Shares of Strides Pharma Science Ltd. rose to their highest level in 21 months on Friday after its Singapore unit received tentative approval for its HIV drug from the U.S. Food and Drug Administration.

The drugmaker's Dolutegravir 50-mg tablets are an equivalent of the Tivicay tablets that are used for antiretroviral therapy in HIV patients. The approval adds to a list of products that Strides Pharma has approved under the U.S. President’s Emergency Plan for AIDS Relief, taking the total to 13 products, according to an exchange filing on Thursday.

Shares of Strides Pharma were trading 8.21% higher at Rs 506.6 apiece, compared to a 0.22% advance in the benchmark NSE Nifty 50. The share price advanced as much as 11.66% during the day to Rs 522.75 apiece, the highest since Nov. 29, 2021.

The stock has risen 45.49% on a year-to-date basis. The total traded volume stood at 31 times its 30-day average. The relative strength index was at 72, implying that the stock maybe overbought.

The lone analyst tracking Strides Pharma maintains a 'buy' rating on the stock, while another recommends 'hold', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 4%.

Out of the two analysts tracking the company, one maintains a 'buy' rating and the other recommends a 'hold', according to Bloomberg data. The average of 12-month price target given by analysts implies a potential upside of 4%.