Explained: Why Zydus Lifesciences shares hit record high today

Shares of Zydus Lifesciences soared to a record high on Tuesday, after jumping sharply in early trade.

Zydus Lifesciences shares were up 2.02% at Rs 1,019.65 apiece on the Bombay Stock Exchange (BSE) at 2.22 pm.

Earlier in the day, the company’s shares rose to a record high of Rs 1,028.45.

The surge in stock value comes on the heels of the company receiving tentative approval from the US Food and Drug Administration (FDA) for its Letermovir tablets.

These tablets are crucial in preventing diseases among patients undergoing bone marrow or kidney transplants.

This marks the fourth consecutive session of gains for Zydus Lifesciences, signaling a strong upward trend in its stock performance.

Moreover, the company's shares have consistently traded above their 50-, 100-, and 200-day moving averages since early November 2023, reflecting sustained investor confidence.

Despite the surge in stock value, data from the London Stock Exchange Group (LSEG) indicates that the average rating of 27 analysts covering Zydus Lifesciences remains at "hold."

Furthermore, the median price target for the company stands at Rs 770.

Nevertheless, investors have shown significant enthusiasm for Zydus Lifesciences this year, with its stock witnessing an impressive surge of approximately 46% year-to-date. This follows a 64% jump in 2023, making it the company's best-performing year since 2020.

The approval of Letermovir tablets by the US FDA represents a major milestone for Zydus Lifesciences and could bolster its position further in the pharmaceutical market.