Neuland Laboratories gets USFDA approval for Schizophrenia Drug

27 Sep 2024 , 03:17 PM

Neuland Laboratories shares rose more than 9% on Friday, September 27, following the USFDA’s approval of Bristol Myers Squibb’s (BMS) new schizophrenia medicine, Cobenfy (also known as KarXT). 

According to market experts, Neuland Laboratories is most likely one of the drug’s active pharmaceutical ingredient (API) suppliers.

However, it is unclear whether the Hyderabad-based company will be Cobenfy’s exclusive supplier.

BMS bought the medicine as part of its $14 billion buyout of Karuna Therapeutics.

Analysts predict the medicine will earn $2.5 billion in sales in the United States by 2030, with BMS aiming to make it available to patients as early as October.

Cobenfy is expected to be priced at $1,850 each month, totalling $22,500 annually.

Neuland Laboratories shares rose 9.05% to an intra-day high of ₹13,600 on the BSE. The stock began at ₹13,300.05 in the morning trade, up 6.65% from the previous close of ₹12,470.8.

Neuland Laboratories specialised in offering sophisticated and specialised APIs to pharmaceutical companies developing new medicines.

Neuland Laboratories’ quarterly net profit climbed by 58% to ₹98.3 crore in June 2024, from ₹62.2 crore the previous year.

The company reported total income of ₹444.4 crore for the quarter ending June 2024, a 22% increase from ₹365 crore in the same time last year.

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