- Zydus Cadila said it has received approval from the Drug Controller General of India (DCGI) to initiate clinical trials for a New Chemical Entity (NCE) intended to treat Rheumatoid Arthritis (RA).
- Rheumatoid Arthritis is a progressive, systemic autoimmune disease that affects at least 1 in every 100 peeple worldwide, the statement added.
- Autoimmune diseases cause the body’s immune system to mistakenly attack one’s own healthy normal tissues
Cadila's new drug for rheumatoid arthritis gets permission for clinical trials in India
Rheumatoid Arthritis is a progressive, systemic autoimmune disease that affects at least 1 in every 100 peeple worldwide, the statement added. Autoimmune diseases cause the body’s immune system to mistakenly attack one’s own healthy normal tissues.
The new molecule, called ZYBK2, was discovered at the University of Michigan and Zydus Cadila acquired the rights for this molecule and conducted all the development work.
The company, which currently makes most of its money from anti-infectives and cardiac drugs, has been focussing on new therapies too, especially, in medicines that cure neoplastic disease and pain.
India's healing touch
Cadila is one of the stocks that has taken a beating in recent weaks as exports to US come under threat. CLSA described the phenomenon as 'near capitulation'. However, Cadila may be better off than other major pharmaceutical producers like Sun Pharma, Lupin, and Cipla.
"To put the underperformance into context, Sun, Cipla and Lupin have seen a big 10-20ppts decline in stock price over the last 3-6 months, whereas Abbott India, Torrent and Alkem have risen a massive 14-70% over the same period," the report said.
The growth visibility is better for companies that are focussed on India (about 10-11% a year), according to the global broking firm, which highlighted that Cadila (including its consumer business), Torrent and Ipca have over 40% of revenue from India. CLSA retained its 'buy' rating on the stock and increased the target price to ₹330 recently.
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