Wockhardt Share Price Surge 40% in 5 Days as Key Antibiotics Near Launch

Wockhardt shares have been on a significant upward trajectory, surging nearly 40% over five consecutive sessions and reaching a 52-week high of ₹943 on July 3. The bullish sentiment surrounding the company is due to the progress of two of its promising antibiotics, which are nearing a potential launch in India.

This surge follows the company's investigational antibiotic drug Zaynich, filed as WCK 5222, successfully treating a cancer patient in the US, marking the first such instance.

Additionally, the drugmaker has applied to the Drug Controller General of India for Nafithromycin (filed as WCK 4873), which is used to treat pneumonia. The company stated that it plans to launch the product within a couple of months after receiving approval.

The drug holds the potential to capture market share from Azithromycin due to its superior results and quicker efficacy. Wockhardt has secured two patents for this drug, which expire in 2031 and 2037, providing ample time to capitalize on its robust R&D efforts. The company plans to launch Nafithromycin in India in the coming months, founder-chairman Habil F. Khorakiwala told NDTV Profit earlier this year.

While Nafithromycin is expected to launch in FY25, targeting a market size of hundreds of crores over the next three to five years, the phase 3 trials for Zaynich are anticipated to be completed by the last quarter of the current fiscal year.

The company plans to launch Zaynich by FY26, contingent upon successful phase 3 trials. This launch targets a market valued at $1.5 billion annually in developed countries and $263 million in developing countries.

The company's strength in research and development, along with its emphasis on niche, high-margin segments with minimal competition, is fueling optimism for its stock. Renowned investors Madhusudan Kela and Prashant Jain joined in the company's ₹480 crore QIP earlier this year, seeking to capitalize on Wockhardt's anticipated significant growth. The funds raised were intended to support Zaynich's phase 3 trials. 

The management remains optimistic about achieving better results in the future. Speaking to CNBC-TV18 earlier this year, founder-chairman Habil F Khorakiwala expressed his expectation that the company will reach profitability by the second half of FY25. He also mentioned that margins are expected to improve following the launch of Nafithromycin and Zaynich in India.

Confident in the company's promising future, investors have been favorably investing in Wockhardt, keeping its shares in the green for 11 consecutive sessions. This robust uptrend has resulted in a 64% return over the past month. On July 3, Wockhardt's shares also saw an intraday surge of nearly 10%.