The Shares of the leading pharmaceutical firm gained 4.2% to an intraday high of ₹1,188.10 per share after it partnered with Cipla for the distribution of the new Urinary Tract infections(UTI) drug called Cefepime Enmetazobactam across India.
At 11:40 a.m., Orchid Pharma Ltd shares were trading at ₹1,156.70 per share, up 1.48 percent from the previous close price on the Bombay Stock Exchange and the Orchid Pharma has a market capitalization of ₹5,786 crore.
What’s News: Orchid Pharma Limited has announced a partnership with Cipla Limited to develop and distribute a new drug, Cefepime-Enmetazobactam, aimed at treating complicated urinary tract infections (cUTI), hospital-acquired pneumonia (HAP), and ventilator-associated pneumonia (VAP), according to a recent exchange filing by Orchid Pharma.
The partnership between Orchid Pharma and Cipla leverages Orchid’s innovative drug development capabilities and Cipla’s extensive distribution network and market presence. This collaboration is designed to ensure that life-saving medications reach healthcare providers across India swiftly and efficiently.
About Orchid Pharma:Orchid Pharma is a pharmaceutical company engaged in the development and manufacture of active pharmaceutical ingredients (APIs) and finished dosage forms.
Orchid is a leading producer of high-quality cephalosporins, particularly sterile products. It is one of only three USFDA-approved facilities globally and the only one in India. Notable clients include Sanofi, Sun Pharma, Pfizer, and Mylan, with the top 10 clients contributing 57% of the company’s total revenue.
Meanwhile, Cipla is a global pharmaceutical company committed to agile and sustainable growth. The company focuses on complex generics and expanding its portfolio in key markets, including India, South Africa, North America, and other regulated and emerging regions.
Financials: The revenue of Orchid Pharma increased by 23% year-on-year, rising from ₹666 crore in FY22-23 to ₹819 crore in FY23-24. Simultaneously, the net profit doubled, increasing from ₹46 crore to ₹92 crore during the same period.
In the recent financial year, Orchid Pharma reported a net profit margin of 11.60 percent and an operating margin of 13.21 percent.
Stock Returns: Orchid Pharma shares have given returns of 57% in the last six months and also delivered multibagger returns of 128% in a year. Such that, A shareholder investment of ₹1 lakh in the company a year ago, would be worth ₹2.28 lakhs.
Shareholding pattern: As per the recent shareholding pattern, the company’s promoters hold a 69.84 percent stake, while domestic institutional investors hold 17.73 percent and retail investors hold a 10.47 percent stake in the company.
Written by Omkar Chitnis
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