Pharma stock jumps nearly 5% after company secured a patent for 20 years; Check the details

Shares of a pharmaceutical company gained nearly 5 percent to reach an intraday high of ₹ 310.00 apiece on the National Stock Exchange (NSE) after it was granted a patent for its invention for a period of 20 years. 

According to an exchange filing, Gufic Biosciences has been granted a patent for an invention entitled “A Freeze Dried Parenteral Composition Of Omadacycline Tosylate And Process For Preparation Thereof” on September 14, 2023, for the term of 20 years effective from April 19, 2021, in accordance with the provisions of the Patents Act, 1970. 

Gufic Biosciences is engaged in the manufacture of pharmaceuticals, medicinal chemicals and botanical products. 

The company’s share price increased from ₹ 82.65 to ₹ 310.00 apiece in a span of three years, delivering multibagger returns of 275 percent. Thus if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 3.75 lakhs today! 

With a market capitalization of ₹ 2,872 crores, Gufic Biosciences is a small-cap company. It has a low return on equity of 16.73 percent and an ideal debt-to-equity ratio of 0.96. Its shares were trading at a price-to-earnings ratio (P/E) of 36.22, which is lower than the industry P/E of 41.72, indicating that the stock might be undervalued as compared to its peers. 

The company’s promoters hold a 75 percent stake in it, followed by retail investors with 23.27 percent stake, mutual funds with 1.03 percent and foreign institutions with 0.70 percent stake. 

Written by Simran Bafna