Concord Biotech shares jump 8% after US FDA clears firm's new drug

About this update from Concord Biotech Ltd.

Concord Biotech shares rose more than 8 percent on Wednesday after the company received approval from the US Food and Drug Administration (USFDA) for a new drug.The stock climbed as much as 8.46 percent to an intraday high of Rs 1,264.90 per share on the NSE.The rally came after Concord Biotech said it had received approval from the USFDA for its Abbreviated New Drug Application (ANDA) for Mycophenolate Mofetil for Oral Suspension USP, 200 mg/mL.The drug is an immunosuppressant used to prevent organ rejection in adult and paediatric recipients aged three months and above who have undergone allogeneic kidney, heart or liver transplants. It is administered in combination with other immunosuppressants.Concord Biotech Technical Outlook According to Virat Jagad, Senior Technical Research Analyst at Bonanza, the stock has shown signs of a trend reversal after a prolonged corrective phase.He said the stock has rebounded from the Rs 1,130-Rs 1,150 support zone and witnessed a sharp upmove with improved volumes, indicating fresh accumulation. The stock has moved above its short-term moving averages, while the Relative Strength Index (RSI) has crossed 60, signalling strengthening momentum.Jagad said the stock is nearing a long-term descending trendline resistance zone of Rs 1,280-Rs 1,320. A sustained move above this range could pave the way for further gains towards Rs 1,450 and Rs 1,600, while Rs 1,130 remains a key support level.Meanwhile, the global brokerage firm Jefferies has maintained its 'Hold' rating on Concord Biotech with a target price of Rs 1,020.The brokerage said the company's fourth-quarter FY26 performance was below expectations due to delays in order execution and regulatory approvals. However, it expects revenue growth in FY27 to be higher than the company's historical average.Jefferies also expects EBITDA margins to improve in FY27 and said the current order book provides visibility for the first half of the fiscal year. It, however, flagged delays in tender awards as a key risk.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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