Synopsis:
Senores Pharmaceuticals is well-positioned to remain insulated from recent US tariffs on branded and patented drugs due to its fully operational US manufacturing facility. With robust CDMO/CMO operations, a diversified regulated markets portfolio, and a strong product pipeline, the company offers both resilience and growth potential, reflected in a 40 percent return over six months.
The US government recently announced a 100 percent tariff on branded and patented drug imports effective October 1. This decision sparked concerns among investors, as companies relying heavily on US exports could face a significant impact.
However, firms with domestic manufacturing in the US are largely exempt from this tariff, mitigating the potential downside. Senores Pharmaceuticals stands out in this scenario, with an established US facility ensuring tariff immunity and continuity of operations.
About the Company
Senores Pharmaceuticals Limited, together with its subsidiaries, is a research-driven global pharmaceutical company focused on developing and manufacturing a wide range of products for the US, Canada, and other regulated and emerging markets.
The company’s current portfolio includes 70 ANDA and 27 CMO/CDMO commercial products approved for distribution in the US. Senores also manufactures complex generics certified by global authorities and serves more than 40 emerging markets with over 308 product registrations and 719 applications.
The company operates two formulation manufacturing facilities—one in Atlanta, US, USFDA approved and DEA, TAA & BAA compliant for controlled substances and government supplies, and the other in Chhatral, Ahmedabad, India, WHO-GMP approved for emerging markets. In addition, Senores runs two API manufacturing sites in India (Chhatral and Naroda) and has strong R&D capabilities across three sites (one in the US, two in India).
Senores Pharmaceuticals currently has a market capitalization of Rs. 3,373.43 crore and a stock price of Rs. 732.50, delivering a return of 32.56 percent over the past six months.
Regulated Markets Business
Senores primarily serves the US, Canada, and the United Kingdom, contributing 65 percent of total revenue in Q1FY26. The company’s USFDA-approved Atlanta facility supports both its own products and CDMO/CMO operations. The regulated markets portfolio comprises 24 commercialized products, 70 approved ANDA products, 57 pipeline products, and 37 pipeline CGT opportunity products.
Mr. Swapnil Shah, Managing Director, said, “Our moat lies in our ability to serve the government channel in addition to the retail channel in the US. This gives us considerable competitive advantage in the US market. A large part of our product pipeline has potential to cater to government contracts. Our capability to manufacture and supply controlled substances in the US is another differentiator for us.
Our CDMO/CMO segment is also scaling up as planned. We are adding new contracts and increasing the share of pocket from existing customers. The contracts in hand give us good visibility for the year ahead. With respect to the US tariff situation, we believe we are largely insulated with our entire formulation manufacturing happening locally in the US.”
CDMO/CMO Operations In Regulated Markets
The company offers customized formulation, development, and manufacturing capabilities for customers. Contracts span over 40 products across the US, Canada, UK, South Africa, UAE, Israel, Denmark, Saudi Arabia, and Vietnam. The CDMO/CMO business model generates recurring revenue with steady and predictable cash flows, including technology transfer, developmental costs, and service income. Senores’ capacity to manufacture controlled substances and cater to government supplies in the US sets it apart as a one-stop-shop solution provider.
Atlanta Facility Highlights
The US facility spans 185,300 sq. ft., with two operational manufacturing lines producing 1.2 billion OSD units annually. Two additional lines are scheduled for Q3 and Q4 FY26, bringing total annual capacity to 2 billion units. The facility has received four USFDA approvals, eight customer audits, and remains DEA and BAA compliant for controlled substances and government supplies.
Senores collaborates with leading pharmaceutical players including Ajanta Pharma, Ambica, Cintex, Cipla, Dr. Reddy’s, Jubilant Cadista, Mankind, Sun Pharma, and Shalina.
Financial Snapshot
Quarter-on-Quarter (QOQ): Sales increased from Rs. 114 crore to Rs. 138 crore, up 21.05 percent. Operating profit rose from Rs. 19 crore to Rs. 34 crore, a jump of 78.95 percent. PBT grew from Rs. 21 crore to Rs. 26 crore, an increase of 23.81 percent, while net profit improved from Rs. 18 crore to Rs. 21 crore, up 16.67 percent.
Year-on-Year (YOY): Sales surged from Rs. 80 crore to Rs. 138 crore, up 72.50 percent. Operating profit rose from Rs. 21 crore to Rs. 34 crore, an increase of 61.90 percent. PBT increased from Rs. 13 crore to Rs. 26 crore, a rise of 100 percent, while net profit jumped from Rs. 11 crore to Rs. 21 crore, up 90.91 percent.
Outlook
Senores Pharmaceuticals is strategically positioned to navigate global trade uncertainties, particularly the recently announced US tariffs on branded and patented drugs. With a fully operational US manufacturing facility, the company is largely insulated from potential import restrictions, ensuring uninterrupted supply to the largest pharmaceutical market globally. This localized production not only protects revenue streams but also strengthens Senores’ competitive advantage in regulated markets.
Additionally, the company’s diversified portfolio—spanning commercial products, ANDA approvals, and CDMO/CMO contracts—offers multiple growth levers and mitigates concentration risk. Its robust USFDA-approved Atlanta facility, capable of producing controlled substances and fulfilling government contracts, underscores operational resilience.
Written By Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
