40% rally in 5 days: Why Wockhardt shares are soaring
Wockhardt, a prominent Indian pharmaceutical company, has witnessed a significant surge in its shares, which have risen nearly 40% over five consecutive sessions. This increase culminated in a 52-week high of ₹943 on NSE in today's session. The surge is primarily attributed to the impending launch of two promising antibiotics developed by the Mumbai headquartered pharma giant. Over the past month, Wockhardt's stock has risen for 11 consecutive sessions, yielding a 64% return.
Wockhardt's promising antibiotics set for launch
Wockhardt's investigational antibiotic drug Zaynich, also known as WCK 5222, has been effective against multi-drug resistant pathogens. The drug, a combination of Zidebactam and Cefepime, has shown a 100% success rate in trials. Zaynich has been granted Qualified Infectious Disease Product (QIDP) status by USFDA as it targets several critical and high-priority superbugsAdditionally, Wockhardt has applied for the approval of Nafithromycin (WCK 4873), an antibiotic used to treat pneumonia.
Wockhardt's future plans and market expectations
Founder-chairman Habil F Khorakiwala revealed that Nafithromycin is likely to be launched in FY25, targeting a market size of hundreds of crores over the next three to five years. The company also plans to launch Zaynich by FY26, contingent on successful phase 3 trials. The market for Zaynich is valued at $1.5 billion annually in developed countries and $263 million in developing countries.
Investor confidence in Wockhardt's future prospects
Wockhardt's focus on research and development, particularly in high-margin, low competition segments, has attracted significant investor interest. Notably, investors Madhusudan Kela and Prashant Jain participated in the company's ₹480 crore QIP earlier this year. This was aimed at raising funds for Zaynich's phase 3 trials. Khorakiwala expressed optimism about the company's future, stating that he expects Wockhardt to achieve profitability by the second half of FY25.
