Synopsis: A small-cap pharmaceutical stock gained traction after securing a 20-year patent for its innovative dual-release gastro-resistant tablet, designed to offer long-lasting relief to GERD patients. 

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A leading small-cap pharma stock drew investor attention after obtaining a 20-year patent for a next-generation gastro-resistant drug targeting GERD, a condition affecting millions worldwide. 

Akums Drugs & Pharmaceuticals Ltd, with a market capitalization of Rs. 7,408.54 crore, opened at Rs. 474 and hit an intraday high of Rs. 480.20 against the previous close of Rs. 468.25, marking a rise of about 2.56 percent.

What’s the News?

The company has been granted a patent titled “Dual Release Gastro-Resistant Composition” for 20 years starting November 19, 2022, under the Patents Act, 1970. This patent covers Akums’ novel Dual Release Proton Pump Inhibitor (PPI) tablet developed for moderate to severe or treatment-resistant GERD, a condition estimated to affect 14 percent of the global population and over 15.6 percent of Indians.

Conventional PPIs often fail to sustain acid suppression throughout the night, leading to incomplete symptom relief. Akums’ Dual Release PPI tablet addresses this gap using a unique “tablet-in-tablet” technology that releases 50 percent of the active ingredient in the duodenum and the remaining 50 percent in the ileum. This mechanism ensures extended absorption, better heartburn-free days, long-lasting relief, and improved patient compliance with just one tablet a day. 

Financial Snapshot – Q1FY26

During Q1FY26, Akums reported sales of Rs. 1,024 crore compared to Rs. 1,056 crore in the previous quarter, marking a 3 percent decline. Operating profit rose 37 percent quarter-on-quarter to Rs. 129 crore from Rs. 94 crore, while profit before tax (PBT) increased 28 percent to Rs. 96 crore from Rs. 75 crore. However, net profit fell 57 percent sequentially to Rs. 65 crore from Rs. 150 crore.

On a year-on-year basis, revenue grew 0.5 percent from Rs. 1,019 crore to Rs. 1,024 crore, while operating profit inched up 1 percent to Rs. 129 crore from Rs. 128 crore. PBT rose 10 percent to Rs. 96 crore from Rs. 87 crore, and net profit improved 7 percent to Rs. 65 crore from Rs. 61 crore.

About the Company

Incorporated in 2004 and headquartered in Delhi, Akums Drugs & Pharmaceuticals Ltd manufactures and markets pharmaceutical formulations and active ingredients in India and overseas. The company’s diversified portfolio spans prescription drugs, nutraceuticals, herbal and ayurvedic products, cosmetics, and over-the-counter medicines across therapeutic areas including cardiology, orthopaedics, gynaecology, dermatology, and gastroenterology. Akums also operates as a leading contract development and manufacturing organization (CDMO), catering to major Indian and global pharmaceutical companies.

Written by Manan Gangwar

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