The share price of this pharma firm surged by 84% over the past month following the company’s groundbreaking announcements.
With a market capitalization of Rs 14,109 crores, the shares of Wockhardt Ltd had surged 84 percent over the past month, On Thursday’s trade (July 4th) the company shares reached a 52-week high price of Rs 993.35 per share. The shares of Wockhardt Ltd generated a multi-bagger return of 281 percent over the past 12 months due to the following reasons:
What Happened: According to Wockhardt Ltd’s stock exchange filings, their new antibiotic Zaynich (Zidebactam/Cefepime-WCK 5222) had successfully treated a severe thigh infection in a US cancer patient.
Also, Wockhardt had earlier announced future plans to enter the biosimilar space in the next 3-4 years and also to expand its product portfolio by adding Biologicals, new insulins, and other diabetic products.
Along with this the Clinical and Laboratory Standards Institute (CLSI) in the US had granted high susceptibility breakpoints to Wockhardt’s new antibiotic Zaynich (Zidebactam/Cefepime – WCK 5222).
Further, Wockhardt had also planned a fundraising through a Qualified institutional placement (QIP). The company intends to spend 50 percent of the funds from the fundraise towards research programs, while the remaining will be used for operating working capital and debt repayment.
Wockhardt Ltd’s Zaynich (Zidebactam/Cefepime-WCK 5222) had successfully treated a challenging infection in a US cancer patient, marking its first use against highly resistant Pseudomonas bacteria. The patient was not able to be cured despite receiving standard treatments.
The patient then received Zaynich, the antibiotic produced by Wockhardt offering the crucial treatment needed when other options would have failed, according to Wockhardt’s filings.
Financials: Reviewing the financials of Wockhardt Ltd on a year-on-year basis, the revenues rose by 5.5 percent from Rs 2,651 crores in FY23 to Rs 2,798 crores in FY24. In the same time frame, the net losses declined by Rs 621 crores to Rs 472 crores.
Wockhardt Ltd’s total borrowing was reduced by 40.4 percent from Rs 1,568 crores in FY21 to Rs 933 crores in 6M FY24. The net debt-to-equity ratio stood at 0.27 times for 6MFY24.
Taking a look at other key financial indicators of Wockhardt the EBITDA grew by 80 percent from Rs 96 crores in 9MFY23 to Rs 173 crores in 9MFY24. As of 9MFY24, Wockhardt derived 78 percent of its revenues from its international business.
Shareholding pattern: As of March 2024, Wockhardt Ltd’s shareholding pattern stood at 51.60 percent for promoters, 37.98 percent for the public, 5.59 percent for foreign institutional investors, and 4.83 percent for domestic institutional investors.
About the company: Incorporated in 1999 and headquartered in Mumbai, Wockhardt is a global pharmaceutical and biotechnology organization engaged in manufacturing finished dosage formulations, injectables, biopharmaceuticals, orals, and topicals such as creams and ointments. Wockhardt has regulatory registrations in more than 40+ countries.
Written By Zahal.
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