Lupin share up on USFDA approval for its contraceptive drug Norethindrone

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An investor with fair risk appetite can buy Lupin
Lupin's share went up as it received the US regulatory approval to launch oral contraceptive tablets Norethindrone.

The tablets are generic version of Watson Pharmaceuticals' brand Nor-QD and have annual sales of about $52 million in the US. 

News reports have quoted analysts that the market size for Norethindrone is closer to $70 mn.

Of the 26 filings that Lupin has made in the oral contraceptives segment, this is first instance where it will get a chance to fork out a pie of the $4.5 billion market in the US.

According to Goldman Sachs, there is a 'Buy' recommendation on Lupin with a price target of Rs 518, as stated by Economic Times. The report apparently says that the company will add to the company's topline from the FY2012E. It is best positioned to gain from the oral contraceptive market in US, estimated at $3.7 billion.

On the technical front, the stock is showing an upward trend over the last six months. The 7 and 20 day SMA has taken to upward trend and crossed the 50 day SMA. The volumes have spiked. A high risk investor can consider to buy this stock but must keep track of the stock. DISCLAIMER: The views expressed in this article are the views of the author and do not reflect the views of our company. does not take any responsibility for any losses incurred by investors who take their cues from the above article

Read more about: lupin, usfda, drug, pharma, bse, nse
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