Sanofi, one of the leading pharmaceutical companies, witnessed a sharp rise in share prices on Tuesday. The company's shares jumped after the National Pharmaceutical Pricing Authority (NPPA) has withdrawn guidelines for price control of 108 formulations.

Shares of the company are trading at Rs 3,360.85, up Rs 374.2, or 12.53% at the Bombay Stock Exchange (BSE) on Tuesday at 1:00 p.m. The scrip has touched an intra-day high of Rs 3,420.35 and low of Rs 3,130.00. The total volume of shares traded at the BSE is 10,263.

Commenting on the NPPA move, Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, ''The biggest positive impact will be felt for companies like Sanofi (Rs 1.39 billion gain), Zydus Cadila (Rs 400 million gain), Ranbaxy (Rs 380 million gain), Cipla (Rs 190 million gain), Lupin (Rs 320 million gain) , DRL (Rs 140 million gain in sales) and Sun Pharma (Rs 250 million gain in sales), on the basis of AIOCD AWACS. Thus, amongst the domestic and MNC player, the latter would be impacted the most positively, as they mostly price their products much higher than the competition and then derive their 100% of the sales from domestic markets.

The domestic companies not having very huge exposure to the domestic market, will be insulated to a large extent, as the pricing is not the key growth driver for their growth. Their products are therefore competitively priced. Thus, we maintain our recommendations in the sector.''