Cipla, AstraZeneca, Pfizer, others rally as focus shifts to new COVID variant

Shares of pharmaceutical and healthcare companies like Solara, AstraZeneca, Cipla surged over 6 percent on Friday in an otherwise negative market — the sharpest drop in seven months — on reports of a fast-spreading COVID-19 variant that emerged in South Africa.

The World Health Organisation (WHO) warned of the new and possibly vaccine-resistant COVID variant B.1.1.529. According to primary research findings, the variant harbours a constellation of mutations and thus, is likely to have a higher transmission rate than the Delta variant.

The S&P BSE Healthcare index rose over 2 percent even as Sensex declined 2.5 percent as the investor focus shifted to pharma stocks amid the reports of the new variant.

The shares of Solara Active Pharma — a pure-play API company — surged over 8 percent, rising to an intraday high of Rs 1,175. At 11:15 am, the stock was trading over 7.5 percent higher at Rs 1,168.

AstraZeneca India, a research-based biopharma company and COVID-19 vaccine maker, was also up over 8 percent, rising to an intraday high of Rs 3,280. At 11:15 am, the stock was trading over 6 percent higher at Rs 3,224.

Cipla India, a large-cap pharma company, rose as high as 6.5 percent to Rs 958.7. Panacea Bio, a manufacturing partner of Russia’s RDIF for the sale of Sputnik V vaccine in India, also rose over 5 percent, hitting an intraday high of Rs 202.15. CNBCTV18