Why SPARC Shares Surged Over 40% in March

Shares of Sun Pharma Advanced Research Company (SPARC), a subsidiary of Sun Pharma Industries, rallied as much as 10 per cent to hit a new high of Rs 598 on Tuesday. Including today's gain, SPARC is up 42 per cent in the month of March.

 

The stock has seen buying on account of a slew of positive news, analysts say. On Wednesday, Sun Pharma Advanced Research Company had announced that the US Food and Drug Administration (USFDA) approved its new drug application for anti-epileptic drug ELEPSIA XR. The product will be manufactured by its parent company Sun Pharmaceutical Industries at its Halol facility in Gujarat.

 

Since then, the stock has been on investors radar and has been in high demand. The trading volumes in the month so far has been very high; on Monday as many as 6 million shares of SPARC changed hands on the BSE.

 

SPARC is a pharma research and drug discovery company. Formed in 2007, when Sun Pharmaceutical Industries separated out its active projects in drug discovery and innovation into a new company.

 

Currently, the company is working on projects in new drug development in a few well-defined therapeutic areas that have established biology.

 

The shares of SPARC ended 0.5 per cent weaker at Rs 541. The stock opened at Rs 550 and touched its fresh 52-week high of Rs 598 in trades today.