Shares of this smallcap company jumped around 2 percent in Friday’s trading session after receiving USFDA approval for Sevelamer Carbonate Tablets. The shares have delivered a multibagger return of 137 percent to its shareholders.
With a market capitalization of Rs. 7,822 crores, the shares of Strides Pharma Science Ltd started Friday’s trading session on a higher note at Rs. 834 compared to its previous close of Rs. 833.30. During the trading session, the shares hit a high of Rs. 857.50, gaining around 2 percent and are currently trading at Rs. 846 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that its step-down wholly owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, had received approval for Sevelamer Carbonate Tablets, 800 mg, from the United States Food and Drug Administration (USFDA).
The product is bioequivalent and therapeutically equivalent to the Reference Listed Drug (RLD), Renvela Tablets, 800 mg, of Genzyme.
Sevelamer Carbonate is a medication used to manage elevated levels of phosphate in the blood of patients with chronic kidney disease. When consumed after a meal, the medication binds to dietary phosphate and prevents its absorption thereby managing overall phosphate levels in the blood.
As per IMS, Sevelamer Carbonate Tablets, 800 mg has a market size of USD 181 million and this approval further strengthens the company’s presence in the Sevelamer portfolio, complementing the existing approval of Sevelamer Carbonate Powder for Oral Suspension, which has a market size of USD 23 million.
Looking at the company’s financial statements, the revenue increased by around 4 percent from Rs. 999 crores during the September quarter to Rs. 1,038 crores in the December quarter. In addition, the net profits showcased a transition from a net loss of Rs. 149 crores to a net profit of Rs. 54 crores during the same timeframe.
Moreover, the company has 260 cumulative ANDA filings (including the recently acquired portfolio from Endo at Chestnut Ridge) with USFDA, of which more than 245 ANDAs have been approved and the company has set a target to launch 60 new products over three years in the US.
According to the BSE data, one of the major investment banks Morgan Stanley reentered the stock in March 2020. Currently, the FII hold approximately 9.90 lakh equity shares equivalent to a 1.80 percent stake in this company. The current holding value of the investment amounts to Rs. 84.3 crores.
Headquartered in Bengaluru, Strides Pharma Science was incorporated in 1990. The company is in the business of development and manufacturing of pharmaceutical products. The company’s pharmaceutical products are sold in over 100 countries.
Written By Vaibhav Patil
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