Shares of Ipca Laboratories Ltd and Cadila Healthcare Ltd touched new 52-week highs, gaining 6% and 12%, respectively, on Wednesday.
The government’s move to lift the ban on hydroxychloroquine exports fuelled a rally in the stocks. The Ipca and Cadila stocks are now up 30% and 40%, respectively, from their lows in end-March.
Besides, the US Food and Drug Administration withdrew an import alert on Ipca’s manufacturing units. With this, the firm can supply active pharmaceutical ingredients (APIs), such as hydroxychloroquine sulphate and chloroquine phosphate, to the US.
Ipca and Cadila are large producers of hydroxychloroquine sulphate, demand for which has increased in India and abroad. The anti-malarial drugs are seen as a potential