{"id":872,"date":"2020-03-24T10:56:26","date_gmt":"2020-03-24T10:56:26","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=872"},"modified":"2020-03-24T10:56:26","modified_gmt":"2020-03-24T10:56:26","slug":"hydroxychloroquine-drug-useful-in-clinical-trials-for-covid-19-infection-cadila-chairman","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/03\/24\/hydroxychloroquine-drug-useful-in-clinical-trials-for-covid-19-infection-cadila-chairman\/","title":{"rendered":"Hydroxychloroquine drug useful in clinical trials for Covid-19 infection: Cadila Chairman"},"content":{"rendered":"<p><strong>Update\u00a0on the Indian Equity Market:<\/strong><\/p>\n<p>After hitting the lower circuit in the first half of the day Nifty closed 13% lower at 7,610. Among the sectoral indices, NIFTY PVT Bank (-17.4%), NIFTY Bank (-16.2%), NIFTY Fin Services (-15.5%) closed lower. None of the sectors closed on a positive note. AXIS Bank (-27.6%), Bajaj Finserv (-27.5%), IndusInd Bank (-23.9%) closed lower. None of the NIFTY stocks closed on a positive note.<\/p>\n<p><u>Excerpts from an interview of Mr Pankaj Patel, Chairman, Zydus Cadila with CNBC-TV18:<\/u><\/p>\n<ul>\n<li>Anti-malaria drug Hydroxychloroquine has found to be useful in clinical trials of some patients with Covid-19 infection and Cadila is in a position to increase the production.<\/li>\n<li>On Janta curfew, Mr Patel said that it is a unique idea and it will prepare everyone for a lockdown situation if any.<\/li>\n<li>He said it is a positive step and with respect to clinical research being done, there are more than 10 drugs being tried out as a treatment for coronavirus infection.<\/li>\n<li>A recent report by France researchers showed that hydroxychloroquine has found to be effective. So there is a possibility of use of it in the treatment of infection.<\/li>\n<li>The company is closely watching this situation and is in a position to produce more as and when needed.<\/li>\n<li>The manufacturing is dependent on local raw materials and there is no dependence on imported inputs so the company can supply this drug in sufficient quantity.<\/li>\n<li>Speaking about Covid-19 impact on the company, Mr Patel said, the company does not see a challenge as the US supply will continue unless restrictions are imposed by the government. So there should not be any problem supplying drugs to the US and other markets.<\/li>\n<li>As far as approvals are concerned, the process in on, not that for every drug approval there is an inspection necessary.<\/li>\n<li>He added there will be some slowdown in the approval process as there is a slowdown and in the US people are working from home. However, it is not a major challenge.<\/li>\n<\/ul>\n<p>Consensus Estimate: (Source: market screener website)<\/p>\n<ul>\n<li>The closing price of Cadila was\u00a0\u20b9\u00a0281\/- as of 23-March-2020.\u00a0 It traded at 21.6x\/ 17.5x\/ 15.7x the consensus EPS estimate of \u20b9 13\/16\/17.8 for FY20E\/ FY21E\/ FY22E respectively.<\/li>\n<li>The consensus average target price for Cadila is \u20b9 300\/- which implies a PE multiple of 16.8x on FY22E EPS of \u20b9 15.7\/-.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update\u00a0on the Indian Equity Market: After hitting the lower circuit in the first half of the day Nifty closed 13% lower at 7,610. Among the sectoral indices, NIFTY PVT Bank (-17.4%), NIFTY Bank (-16.2%), NIFTY Fin Services (-15.5%) closed lower. None of the sectors closed on a positive note. AXIS Bank (-27.6%), Bajaj Finserv (-27.5%), [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[343,360],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/872"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=872"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/872\/revisions"}],"predecessor-version":[{"id":874,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/872\/revisions\/874"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}