Laurus Labs shares surge 6% after US approves ’emergency humanitarian waiver’ for HIV treatment

Shares of Laurus Labs Ltd. have surged as much as 6% on Thursday, January 30, after the United States approved an “emergency humanitarian waiver”, which will allow people to continue accessing HIV treatment funded by the country across 55 countries.

The stock fell over 15% on Monday after the US had ordered a stoppage of President’s Emergency Plan for AIDS Relief, or PEPFAR, which would have also interrupted the provisions of anti-viral medications for millions.

“This waiver approves the continuation or resumption of life-saving humanitarian assistance which applies to core life-saving medicine and medical services, including HIV treatment, as well as to supplies necessary to deliver such assistance,” UNAIDS said in response to the US approval.

Laurus Labs had immediately issued a clarification to the exchanges on Monday, stating that any potential funding freeze will not have any significant impact on the business.

The company had said that the overall Anti-Retro Viral (ARV) market size is $1.5 billion, which is 10% of the total HIV financing budget annually.

Laurus Labs had reported its December quarter results last week, where its EBITDA margin returned to the 20% mark for the first time in seven quarters. The management also maintained its full-year guidance.

Shares of Laurus Labs gained as much as 6% and are currently trading 4.1% higher at ₹565.9.