On Tuesday, January 7, shares of Zydus Lifesciences Ltd registered a gain of 4.5%. This surge was seen after the company made two big announcements related to a drug and an agreement.

Big deal for medicines
Zydus announced an agreement with CVS Caremark, under which ZituvioTM, ZituvimetTM and ZituvimetTM XR will be added to the company's portfolio. These medicines are designed to control type 2 diabetes in adults. According to IQVIA's August 2023 MAT data, the US market for DPP-4 inhibitors and their combinations is $10 billion. Diabetes medicines have been a major part of drug sales globally. This deal increases Zydus' access to the US diabetes market and further strengthens its product portfolio. Approval of new drug In another announcement, Zydus said that the US FDA has accepted the New Drug Application (NDA) for Sentynl's new drug CUTX-101 for priority review. CUTX-101 is used to treat the rare disease 'Menkes Disease'.
 

• CUTX-101 has received Breakthrough Therapy, Fast Track, Rare Pediatric Disease, and Orphan Drug status.
• The European Medicines Agency (EMA) has also given it orphan drug status.

Analysts' opinion and stock performance
Zydus shares are currently trading at Rs 1,004, down 25% from its recent peak of Rs 1,324. Out of 33 analysts, 16 have a "buy" recommendation, 11 have a "hold" and 6 have a "sell" rating. These announcements have fuelled excitement in Zydus Lifesciences shares, making it a hot topic among investors on Tuesday.