Buy Orchid Chemicals & Pharmaceuticals Ltd.

Price target: Rs184                                                CM Price: Rs163.30

Event

• Orchid Chemicals & Pharmaceuticals (Orchid) has received US Food and Drug Administration (USFDA)’s approval to sell its much-awaited Tazo-Pip, a premium life-saving antibiotic injection, in the US market.This is the first generic to be approved with Orchid receiving a 180-day exclusivity.

• Orchid would be immediately launching this product in marketing and distribution partnership with Apotex in the USA. The company received approval for selling Tazo-Pip in the USA in H2FY2010 in line with our assumption, however the 180- day exclusivity is a positive surprise.

Implication

Important Indian Stock Market Tips

The Stock Market is a market which deals in stocks of companies belonging to both the public sector as well as private. The Indian Stock Market is mostly referred to as the Share Market because it deals primarily with shares of various companies listed in for trading.

The stock market is a viable investment option at hands for investors in India. Since Indian Stocks market is showing strength and making steady gains over last few years barring few low ebbs it is wise to prefer stock market as reliable mode of investment than other investment options.