The rise of the Covid-19 variant Omicron has once again brought pharma shares in focus. Pharma shares surged on Wednesday, a day after Dr Reddy’s Laboratories and Strides Pharma Science got approval to launch Molnupiravir from the Drugs Controller General of India (DCGI). 

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The US Food and Drug Administration describes Molnupiravir, an anti-viral drug, as a medication that works by introducing errors into the SARS-CoV-2 virus’ genetic code, which prevents the virus from further replicating. It is used in treatment of Covid 19.  

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Dr. Reddy’s Laboratories on Tuesday announced that it has received emergency-use authorisation from the Drugs Controller General of India (DCGI) to manufacture and market the oral anti-viral drug Molnupiravir capsules 200mg for the treatment of adult patients with COVID-19.

"Strides Pharma Science Limited, a global pharmaceutical company, today announced that it has received Emergency Use Authorization from the Drugs Controller General of India (DCGI) to launch Molnupiravir 200mg in India," said a BSE filing from the pharmaceutical company.  

At 11.50 am, Sun Pharma, Dr Reddy's, Divis Labs and Cipla were among the top 5 gainers on the Nifty50. Shares of these pharma firms gained between 1.18 to 2 per cent on the Nifty. Strides Pharma gained nearly 1 per cent to the day's high of Rs 465.05 per share on the BSE.

Earlier, Dr. Reddy’s Laboratories had entered into a non-exclusive voluntary licensing agreement with Merck Sharpe Dohme (MSD) to manufacture and supply Molnupiravir to India and over 100 low and middle-income countries (LMICs). In a first-of-its-kind collaboration in the Indian pharmaceutical industry, a Dr. Reddy’s-led consortium of pharma companies collaborated to jointly sponsor, supervise and monitor the Phase III clinical trial in India, and presented its findings to the Subject Expert Committee (SEC).

Dr. Reddy’s will soon launch its molnupiravir capsules 200mg under the brand name Molflu™ across India, said a statement from the pharma company.