Alembic Pharmaceuticals shares jump 14% on USFDA approval for cancer drug

Shares of Alembic Pharmaceuticals Ltd surged 13.61 per cent in Monday's trade, touching a high of Rs 1,104.10, following a key regulatory milestone. The rally came after the company received final approval from the US Food and Drug Administration (USFDA) for its Doxorubicin Hydrochloride Liposome Injection in two strengths — 20 mg/10 mL (2 mg/mL) and 50 mg/25 mL (2 mg/mL) single-dose vials.

This medication is used in the treatment of Ovarian Cancer, AIDS-Related Kaposi's Sarcoma, and Multiple Myeloma.

According to IQVIA, the market for Doxorubicin Hydrochloride Liposome Injection is estimated at $29 million for the twelve months ending March 2025. With this addition, Alembic now has a total of 224 ANDA approvals from the USFDA, which includes 201 final approvals and 23 tentative approvals, the company said.

Technically, the scrip trades above its 5-day, 10-, 20-, 30-, 50-, 100-, 150-day, and 200-day simple moving averages (SMAs). The 14-day Relative Strength Index (RSI) stood at 74.41. RSI values above 70 are considered overbought, while those below 30 suggest oversold conditions.

According to data from the BSE, the stock currently commands a price-to-earnings (P/E) ratio of 34.36 and a price-to-book (P/B) value of 4.30. It reported earnings per share (EPS) of 32.03 and a return on equity (RoE) of 12.51. Trendlyne data shows a one-year beta of 0.46, pointing to low stock volatility.

As of March 2025, promoters held a 69.67 per cent stake in the pharma player.