The Indian Pharmaceutical industry has experienced significant growth and a positive outlook in 2023. The sector has expanded its global footprint, with India being the largest provider of generic medications worldwide, occupying a 20 percent share of the global supply by volume.
The pharmaceutical industry has been growing rapidly in recent years due to several factors such as increasing demand for generic drugs, growing healthcare infrastructure, and favourable government policies. The Indian pharmaceutical market continues to clock a growth of 9 to 10 percent.
Here is one such Pharmaceutical company that has given 40 percent returns to its shareholders in one month:
Orchid Pharma Ltd
Orchid Pharma is a pharmaceutical company engaged in developing and manufacturing active pharmaceutical ingredients (APIs) and finished dosage forms. It is also engaged in research of new drugs.
With a market capitalization of Rs. 5,907 crores, the shares of the pharmaceutical company started Thursday’s trading session positively at Rs. 1,217.95 compared to its previous close of Rs. 1,214.85. During the trading session, the shares hit a low of Rs. 1,143, making a loss of around 3 percent and are currently trading at Rs. 1,180 apiece.
Shares of Orchid Pharma have gained 40 percent in the last month and have delivered a multibagger return of 113 percent to its investors in six months. For example, if someone had invested Rs. 1 lakh in these shares six months ago, then the worth of those shares would be Rs. 2.13 lakhs now.
On 23 February 2024, Orchid Pharma received approval from the United States Food and Drug Administration (USFDA) for its novel invention, ‘Enmetazobactam’. This USFDA approval paves the way for the introduction of Enmetazobactam in the United States, the largest pharmaceutical market in the world. The product is expected to be launched within the next couple of quarters in the US market.
According to an exchange filing, Orchid Pharma mentioned that they were the first company from India, ever to have invented a product that has received a New Drug Approval (NDA) from USFDA. It is a significant development in addressing the global need for affordable and efficacious drugs to combat antimicrobial resistance (AMR).
Earlier, in January, the pharma company for the same drug received approval from the European drug regulator the European Medicines Agency. The received the approval from European Medicines Agency (EMA) is the recommendation for marketing authorization, this makes the company the first instance of an Indian-invented drug reaching this stage of clinical development.
According to reports, the drug which is awaiting approval from other geographies is estimated to generate global sales of Exblifeb of around 200 to 300 million dollars annually. Orchid is entitled to a 6 to 8 percent royalty on worldwide sales with estimates that the company could make approximately 16 to 25 million dollars annually.
Furthermore, looking at the latest financial statements, the revenue increased by 11 percent from Rs. 199 crores during the September quarter to Rs. 221 crores in the December quarter. In addition, the net profits increased by 45 percent from Rs. 20 crores to Rs. 29 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 38 percent from Rs. 160 crores during Q3FY23 to Rs. 221 crores in Q3FY24. On the other hand, the net profits magnified by 262 percent from Rs. 8 crores to Rs. 29 crores during the same timeframe.
Written By Vaibhav Patil
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