On Monday, Pfizer Inc said that it has identified certain antiviral compounds it had in development that have the potential to inhibit coronaviruses and is engaging with a third party to screen the compounds.
The American drugmaker hopes to get the results of the screening by the end of March and if any of the compounds are successful, it may start testing them by the end of this year.
Shares of Pfizer Ltd, its Indian subsidiary, on NSE rose nearly 13 percent in Tuesday morning trade to a 52-week high of Rs 4,925 apiece.
The Trump administration, on Monday, said that it has secured commitments from top pharma companies to work together to develop vaccine and treatment to fight the virus. Mikael Dolsten, the Chief Scientific Officer of Pfizer Ince, was one of a number of pharmaceutical executives who met American President Trump at the White House.
The coronavirus spread has had a varied effect on shares of drugmakers.
On one hand, market investors think that the virus outbreak in China has the potential to disrupt the supply of essential salts and intermediates, hoping to benefit Indian API (Active pharmaceutical ingredient) makers, causing their share values to surge.
Conversely, pharma companies that make finished products have seen some correction in their share prices. Panic buying and Chinese raw material shortages due to lockdown have spiked prices of many pharmaceutical ingredients.
India, being the largest exporter of drugs in the world, is dependent on China for its raw pharmaceutical ingredients.
Chemical factory closures due to governmental restrictions and staff shortages have caused constraints in sourcing material even from provinces that are aren't disease-stricken. According to a Financial Times report last week, Indian companies are close to exhausting their supply of raw material and status of delivery on orders placed remains unclear.