Shares of this small-cap company surged around 16 percent after signing contract manufacturing agreements with the UK, and EU customers for the supply of 15 Active Pharmaceutical Ingredients (APIs).
With a market capitalization of Rs. 1,040 crores, the shares of Bajaj Healthcare Ltd started Wednesday’s trading session on a flatter note at Rs. 321.05. During the trading session, the shares hit a high of Rs. 372, gaining around 16 percent and currently trading at Rs. 368 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that it has entered into a definitive CDMO agreement with esteemed UK and EU-based customers for the supply of 15 Active Pharmaceutical Ingredients (APIs).
Under this agreement, the company will undertake the development and supply of these molecules, which will be exclusively manufactured for its clientele. These APIs encompass a diverse range of compounds, including off-patent generics and molecules soon to be off-patent. Moreover, the CDMO agreement will be executed through its in-house R&D and manufacturing capacities at Savli Vadodara, Gujarat.
Coming onto the company’s financial statements, the revenue increased by 7 percent from Rs. 101.21 crores during the September quarter to Rs. 108.57 crores in the December quarter. On the other hand, the net losses of the company narrowed down from Rs. 3.46 crores to Rs. 2.20 crores during the same period.
During the quarter Bajaj Healthcare successfully commissioned the Alkaloid Extraction Plant in Vadodara, Gujarat with high standard technology. Further, the company was awarded two contracts by GOI, one for processing Opium Gum and another for Processing Poppy Straw, the capacity has been enhanced to 250 MTPA for Opium Gum and 2500 MTPA for Poppy Straw.
Moreover, Bajaj Healthcare is investing in specific technologies for FY24 to enhance its operations and growth prospects. The company has lined up 10 Drug Master Files (DMFs) to be filed in the United States during the fiscal year. Additionally, the company is focusing on strengthening its presence in the European markets and plans to enter the U.S. market with product patents between 2024-2026.
Headquartered in Mumbai, Bajaj Healthcare was incorporated in 1993. It is a bulk drug manufacturer manufacturing and supply of various Active Pharmaceutical Ingredients (APIs), Amino acids and Nutritional supplements for Pharmaceuticals, Neutraceuticals, and Food industries.
Written By Vaibhav Patil
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