Synopsis:
Vivo Bio Tech announced securing a pre-clinical testing contract worth Rs 10.75 crore for providing its top-notch services to a domestic entity.
The shares of this leading pharma company are in focus after the company secured a valuable contract in which it will take charge of a full suite of pre-clinical safety and regulatory studies, which includes everything from toxicity tests to mutagenicity evaluations, ecotoxicology studies, and thorough analytical services.
With a market capitalization of Rs 84.2 crore, the shares of Vivo Bio Tech Ltd made a day high of Rs 43.30 per share, up by 16 percent from its previous day closing price of Rs 37.26 per share. Over the past five years, the stock has delivered a negative return of 20 percent.
About the order
Vivo Bio Tech, through a stock exchange filing, announced that it has landed a pre-clinical testing contract valued at Rs 10.75 crore. This exciting collaboration is with a prominent Indian pharma and agrochemical company.
As part of this agreement, Vivo Bio Tech will take charge of a full suite of pre-clinical safety and regulatory studies, which includes everything from toxicity tests to mutagenicity evaluations, ecotoxicology studies, and thorough analytical services.
The project is set to wrap up in two years and will involve submitting regulatory documents to the Central Insecticides Board & Registration Committee (CIBRC) for necessary approvals.
This contract places Vivo Bio Tech Limited in an elite circle of Contract Research Organizations (CROs) in India, equipped with the infrastructure, scientific know-how, and compliance skills to provide comprehensive pre-clinical solutions.
The company believes this achievement not only reinforces its leadership in pharmaceuticals, agrochemicals, biotechnology, and environmental sciences but also aligns with its long-term goal of transitioning from a drug discovery service provider to a strategic co-innovator alongside global pharma and biotech firms. Additionally, this contract paves the way for future collaborations and joint drug discovery ventures, further enhancing Vivo Bio Tech’s status as a next-generation CRO.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 12.51 crore, registering a 23 percent growth from Rs 10.13 crore in the same quarter last year. Coming to its profitability, the company reported a net profit growth of 688 percent to Rs 1.34 crore in Q1 FY26 as compared to Rs 17 lakh in Q1 FY25.
The stock delivered an ROE and ROCE of 11 percent and 12.56 percent respectively, and is currently trading at a low P/E of 10x as compared to its industry average of 64x.
Vivo Bio Tech Limited is all about providing top-notch drug development and discovery services to pharmaceutical and biotech companies around the globe. They offer a range of services, including toxicity studies, pharmacological investigations, pharmacokinetic studies, and genotoxicity screening.
The company also breeds and supplies lab animals, creates custom rodent models, and offers stem cell products along with lab animal diets. They also provide IND preclinical services and molecule screening. Plus, Vivo Bio Tech specializes in developing unique models to evaluate anti-cancer agents.
Written by Satyajeet Mukherjee
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