Pharmaceutical stocks were in focus on Thursday with Dr Reddy's Laboratories gyrating about 1 percent around the flatline and Solara Active Pharma Sciences rising 4 percent.

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The share price of Dr Reddy's Laboratories seesawed between gains and losses in a range of Rs 4,744-4,808 apiece on BSE, switching direction at least twice after a positive start on Thursday. The company announced its decision to sell its US and Canada rights for a migraine drug.

In a regulatory filing late on Wednesday, Dr Reddy's said it had entered a definitive agreement with BioDelivery Sciences International to sell its US and Canada rights for celecoxib oral solution ELYXYB 25 mg/ml.

The ELYXYB drug is indicated for the acute treatment of migraine with or without aura in adults, Dr Reddy's said.

Dr Reddy's will receive $6 million upfront upon closing deal, followed by $9 million one year from closing. It will also be eligible to receive event- and sales-based milestones, and quarterly earn-out payments.

Solara Active Pharma shares rose as much as 3.54 percent to Rs 1,788.95 apiece during the session, after the company's management gave a strong guidance on an earnings call.

The pharma company has guided for 30 percent topline growth in the current financial year. It has also guided for a stronger second half of the financial year, compared to the first half.

Solara Active has targeted 30 percent contribution from its Contract Research and Manufacturing Services business by FY25.

Brokerage Macquarie said that for the company to reach its target of $750 million of sales by FY25, its API sales need to double, and the CRAMS business must grow 5.5 times in next four years. Macquarie has an 'outperform' call on the stock with a target price of Rs 2,250.

Solara Active Pharma on Wednesday reported a net profit of Rs 50.13 crore for the quarter ended June 30, as against a net profit of Rs 42.28 crore for the corresponding period a year ago. Its revenue from operation grew 16.40 percent to Rs 405.57 crore.

Alembic Pharmaceuticals shares dropped as much as 1.44 percent to Rs 775.05 apiece on BSE. The company received a final nod from the US drug regulator for its clomipramine hydrochloride capsules, used in treating obsessive-compulsive disorder (OCD).

In afternoon deals, the pharma pack traded on a mixed note. Cipla, Sun Pharma and Alkem traded 0.73 percent, 0.54 percent and 0.18 percent higher respectively. Lupin was down 0.30 percent and Aurobindo Pharma 0.27 percent. Alembic Pharma was down 0.87 percent.

The Nifty Pharma sectoral index was up 0.13 percent at the time, while the headline Nifty50 gauge was up 0.20 percent.

(Edited by : Sandeep Singh)

First Published:Aug 5, 2021 12:44 PM IST