Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the telecom sector and FMCG sector witnessing maximum buying interest.

The BSE Sensex is trading up 104 points (up 0.3%) and the NSE Nifty is trading up 31 points (up 0.3%). The BSE Mid Cap index is trading up by 0.1%, while the BSE Small Cap index is trading down by 0.2%. The rupee is trading at 68.15 to the US$.

In the news from pharma sector, Aurobindo Pharma share price is in focus today. The stock of the company is witnessing buying interest today as the company announced it received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Ertapenem Injection 1 g/vial.

Aurobindo’s Ertapenem injection is a generic equivalent of Merck Sharp & Dohme Corp’s Invanz Injection. The company in its BSE filing said that the product will be launched in July this year.

Ertapenem injection is used for the treatment of moderate to severe infections caused by susceptible bacteria. It is also indicated in adults for the prophylaxis of surgical site infection following elective colorectal surgery.

With the above development, Aurobindo Pharma now has a total of 371 abbreviated new drug application (ANDA) approvals (338 Final approvals including 17 from Aurolife Pharma LLC and 33 tentative approvals) from USFDA.

At the time of writing, Aurobindo Pharma share price was trading up by 1%.

Speaking of pharma stocks, the BSE Healthcare Index has been on a roller coaster ride in the past few years. The period from 2012 to 2015 saw the index go up more than three times. Since then it has been a painful ride downwards, as can be seen in the chart below:

The Roller Coaster Ride of the BSE Healthcare Index

Pre-2015, pharma companies enjoyed a fairytale ride in the US market. Low labor costs, good chemistry skills, along with efficiency, ensured Indian companies could copy innovator drugs to make generic drugs at a fast pace.