Biocon hits the fresh lifetime high on the back of news Companies Bengaluru unit getting US FDA clearance.
The Biocon stock rose in early trade today after the firm said the biotechnology firm said it has received the Establishment Inspection Report with ‘voluntary action indicated’ status from the USFDA on the closure of inspection of its aseptic drug product facility.
Shares of Biocon advanced as much as 7.4%, their biggest intraday percentage gain since November 17.
The stock is up almost 30 percent since the beginning of this year. On a yearly basis, the stock is up 41.69 percent on the BSE.
“The US Food and Drug Administration (USFDA) has issued an Establishment Inspection Report in relation to the cGMP (current good manufacturing practice) inspection of its aseptic drug product facility that was audited between May 25 -June 3, 2017,” Biocon said in a BSE filing. “The USFDA has classified the outcome of this inspection as VAI (voluntary action indicated) and EIR states that the inspection is closed,” it added.
The company has not elaborated on the VAI status. The USFDA releases a copy of the EIR to the establishment that was the subject of an FDA or FDA-contracted inspection when the agency determines the inspection to be closed.
The daily chart attached depicts that price shows breakout from the long sideways range pattern. The consolidation range pattern has formed a bullish pattern known as Cup N handle pattern which is considered to be the most reliable pattern in nature. The positive news emerged as a fresh trigger from the stock and helped price to gave breakout from the said pattern and hit fresh all-time highs. The breakout accompanied by the surge in volumes and with positive momentum increases the probability of the breakout. Thus if pattern materializes as expected we can expect the price to enter into new trading and should continue to hit fresh highs in coming trading sessions. However, post-breakout 452-455 can act as an intermediate hurdle for the stock. And if the said resistance is also taken out successfully it will open the gate for 489-491 levels. Conversely, on the flip side, 391-393 should act as a key support for the stock Thus among pharma space this stock has the most bullish chart setup comparing other stocks and should be k the pt on radar with positive bias.