Shares of this large-cap company jumped around 1 percent on Tuesday’s trading session after acquiring a 16.7 percent stake in Lyndra Therapeutics for USD 30 million. The shares have delivered more than 20 percent returns to its shareholders in six months.
With a market capitalisation of Rs. 2,98,393 crores, the shares of Sun Pharmaceuticals Industries Ltd started Tuesday’s trading session positively at Rs. 1,264.80 compared to its previous close of Rs. 1,252.75. The share hit a high of Rs. 1,267.95, gaining 1 percent, also recorded as the company’s fresh 52-week high and currently trading at Rs. 1,224 apiece.
Such a positive movement was observed after the company in an exchange filing mentioned that they have entered into an agreement to acquire a stake of 16.7 percent shares on a fully diluted basis which amounts to USD 30 million, in Lyndra Therapeutics, Inc., a company based in Massachusetts, engaged in the business of developing novel delivery technology for long-acting oral (LAO) therapies.
Furthermore, the company mentioned that the Strategic investment made in the US company is to support the development of innovative pharmaceutical delivery technologies and get access to the technology for certain molecules and territories.
According to the reports, Lyndra has raised USD 260 million to date through investors and partners, including USD 100 million in non-dilutive grants. The company has achieved rapid progress in a short span of time formulating 19 therapies in the lab and advancing four therapeutic products to the clinic, validating the feasibility of its platform with multiple APIs.
Coming onto the company’s financial statement, the revenue increased marginally by around 2 percent from Rs. 11,941 crores in the June quarter to Rs. 12,192 crores during the September quarter. In addition, the net profits increased by around 19 percent from Rs. 2,006 crores to 2,385 crores during the same timeframe.
The company gets revenue from across the globe, primarily from India’s Branded Formulations which contribute 32 percent of the revenue, 31 percent of revenue comes from US formulation, 18 percent is contributed from emerging markets, and the remaining 19 percent of revenue inflows from others and rest of the world.
Sun Pharma continues to invest in R&D for both Global Generics and Specialty businesses. Moreover, the company is exploring new areas of investment without diluting its focus on the core prescription business
Headquartered in Vadodara, Sun Pharmaceuticals Industries Ltd was incorporated in 1993. The company is engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and Active Pharma Ingredients (APIs).
Written By Vaibhav Patil
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