Concord Biotech shares have surged more than 8% by midday following the company's US FDA approval announcement, with the stock showing continued momentum from the previous session's rally. The latest surge comes as Indian benchmark indices remained under pressure, with the Nifty 50 hovering around 23,280 mark, down nearly 0.87%, while the BSE Sensex was trading near 73,940 levels, lower by about 0.95%. The pharmaceutical stock's strong performance stands out amid broader market weakness, with IT stocks witnessing heavy selling pressure as the Nifty IT index tumbled over 5% due to profit booking after previous session gains. According to Business Standard, volume spurted to 53.35 lakh shares by 14:14 IST on NSE, representing a 14.12-fold increase over the two-week average daily volume of 3.78 lakh shares, indicating significant investor interest following the FDA approval announcement.
Concord Biotech has secured US FDA approval for its latest Mycophenolate Mofetil drug after market operating hours on June 2, 2026. According to the NSE filing, the company received approval for its ANDA for Mycophenolate Mofetil for Oral Suspension USP, 200 mg/ml. The new drug is classified as an antimetabolite immunosuppressant used to prevent organ rejection in adult and pediatric patients aged three months and older who have undergone kidney, heart, or liver transplants, in combination with other immunosuppressants. As per The Financial Express, the approval marks another addition to Concord Biotech's regulated market portfolio and strengthened buying interest in the stock, with the company informing exchanges that the product received approval through its ANDA filing with the USFDA.
The US FDA approval opens access to a $30 million market in the United States, as estimated by Concord Biotech in its official filing. The company stated that this approval positions it to capitalise on attractive market opportunities, enhance its product offerings, and support its long-term growth strategy across the US and international markets. With this new product approval, Concord Biotech expects to strengthen the brand's position in the US market in line with its growth strategy and create additional growth opportunities in the transplant therapeutics segment. The approval also aligns with the company's long-term strategy of expanding its presence across regulated international markets.
According to Virat Jagad, Senior Technical Research Analyst at Bonanza, the stock has shown signs of a trend reversal after a prolonged corrective phase. He noted that the stock has rebounded from the ₹1,130-₹1,150 support zone and witnessed a sharp upmove with improved volumes, indicating fresh accumulation. The stock has moved above its short-term moving averages, while the Relative Strength Index (RSI) has crossed 60, signalling strengthening momentum. Jagad said the stock is nearing a long-term descending trendline resistance zone of ₹1,280-₹1,320, and a sustained move above this range could pave the way for further gains towards ₹1,450 and ₹1,600, while ₹1,130 remains a key support level.
The latest stock surge comes amid mixed financial performance, with Concord Biotech reporting consolidated net profit declined 36.75% to ₹88.79 crore in Q4 FY26 compared to the previous year, as reported by Business Standard. The company also experienced a 24.15% drop in revenue from operations to ₹326.07 crore during the same period. According to Moneycontrol, global brokerage firm Jefferies has maintained its 'Hold' rating on Concord Biotech with a target price of ₹1,020. The brokerage said the company's fourth-quarter FY26 performance was below expectations due to delays in order execution and regulatory approvals, but expects revenue growth in FY27 to be higher than the company's historical average. Jefferies also expects EBITDA margins to improve in FY27 and noted that the current order book provides visibility for the first half of the fiscal year.
