Although India is one of the first countries to get emergency approval for a needle-free covid vaccination for the adolescent group of people, the shares of Cadila Healthcare have not reached much. This can be considered as a boost in its sales even few of them are not factoring in sales amidst the uncertainty over the booster shots. The price of these vaccination doses would influence the profits for Cadila with an initial brokerage of Rs 150 to Rs 320 for dosage range. 45.6 crore people to date have received the covid-19 vaccinations; at least one dosage.
The estimated population is nearly 25 crore in the group age of 12 to 18 years of age. Cadila Healthcare will be providing plasmic, needle-free, DNA-based covid-19 vaccines in and around the globe. The tests were conducted on 28000 volunteers as per reports. Cadila Healthcare reported that no severe case was identified during this trial period. This drug-making company would start producing these ZyCoV-D vaccines by mid-September while the distribution will start by the end of October.
As per reports, the vaccine price would be decided in a couple of weeks. Cadila would be able to produce 1-1.5 crore doses per month. The Motilal Oswal securities have found out that the stock worth of Cadila is Rs 670 while they are expecting a split of 75:25 in between the private channels and government for the dosages. The interim efficiency of Cadila Healthcare’s vaccine is 66.6% which is based on 81 patients. The final efficiency would be completely based on data of 158 patients.
As per a statement by the Phillip Capital, it has been noted that Cadila’s vaccine can be stored in 2°C to 8°C. It would remain stable for 3 months at 25 degrees centigrade. Once open it needs to be used within 4 hours.
This brokerage is currently expecting that Cadila would make close to 8.3 crore vaccine doses in FY22 and again 15 crore doses in FY23 at a combined price of Rs 300 per dose. Hence, it can be expected that the ZyCoV-D would earn an ROI of Rs 2,400 crore in FY22 and a profit of Rs 4,500 crore in FY23, resulting in a 17% earnings upgrade for the current year and a 40% upgrade for the next year’s estimations.
This brokerage has a minimum target of Rs 680 on the actual stock. The stock was reportedly trading at Rs 544.35 on Tuesday, which is down half a percent.