Covid vaccine can give this stock a shot in the arm | Economic Times

Mumbai: Drug major Dr Reddy’s Labs (DRL) is one Indian pharma company that has made all the right moves amid the pandemic with the latest being the tie-up with Russian Direct Investment Fund, a sovereign fund from Russia, for conducting clinical trials and distribution of the Sputnik V Covid vaccine in India. The Street cheered the company’s move, with the stock hitting a record high and closing with gains of over 4% on Thursday. The stock has risen 80% in the past six months.78178286From the initial frenzy of launching Covid drugs like Remdesivir, Tocilizumab and Favipiravir, the competition among pharma companies has now shifted to being the earliest to launch vaccines for Covid. Launching an efficacious vaccine is the need of the hour and jump-start the Covid-impacted economy. For an Indian pharma company to get an opportunity to launch a vaccine in the country would not only mean one-time exceptional business gain but also increased brand equity among stakeholders.Sputnik V vaccine, if found efficacious, can prove to be quite beneficial for DRL. The company launched antiviral drug Favipiravir last month and Remdesivir earlier this month.