Senores Pharma Surges 7% After Acquiring 14 Generic Drug Approvals from Dr. Reddy’s
Senores Pharma Surges : In a significant development in the pharmaceutical industry, Senores Pharmaceuticals Limited (SPL) saw its stock price surge by 7.3% on the BSE during Tuesday’s trading session. The rally came after the company announced the acquisition of 14 Abbreviated New Drug Applications (ANDAs) from Dr. Reddy’s Laboratories and its affiliates. This strategic move is expected to bolster SPL’s market presence in the US generics market and expand its revenue opportunities in other regulated and semi-regulated markets worldwide.
Stock Performance & Price Movement
The company, which boasts a market capitalization of ₹2,597 crores, witnessed a strong uptrend as its stock closed at ₹563.95, reflecting an increase of 6.3% from its previous closing price of ₹530.4. Over the last one month, the stock has generated 6% returns, while its one-year performance stands at 1.1% growth.
Strategic Acquisition Details
Senores Pharmaceuticals, through its wholly-owned US subsidiary Senores Pharmaceuticals, Inc., has entered into agreements to acquire 14 ANDAs from Dr. Reddy’s Laboratories. This portfolio comprises 13 already approved by the USFDA, while one application is pending approval.
The acquisition is backed by proceeds from SPL’s Initial Public Offering (IPO), aligning with the company’s planned capital deployment as per its Red Herring Prospectus.
Market Potential
According to IQVIA data, the addressable market opportunity for these ANDAs in the US is estimated at ~$421 million (MAT December 2024). Data from Symphony Health places the market potential even higher at ~$1.13 billion (MAT September 2024).
The company’s Managing Director emphasized that these acquired drug products cater to various distribution channels, including government procurement, retail, and specialty clinics, thus broadening SPL’s reach and revenue potential. He further stated that this expansion strengthens SPL’s product portfolio in the US and enhances its business footprint in other global markets.
Strong Financial Growth
Senores Pharmaceuticals has demonstrated robust financial growth, evident from its latest quarterly results:
| Financial Metric | Q3 FY24 | Q3 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹78.7 Cr. | ₹103 Cr. | 31% increase |
| Net Profit | ₹7 Cr. | ₹16 Cr. | 128.6% increase |
| EBITDA | ₹15 Cr. | ₹29 Cr. | 92% increase |
| EBITDA Margin | 19.2% | 27.3% | 810 bps growth |
The company’s net profit more than doubled over the year, reflecting its strong operational efficiency and revenue growth.
Company Overview & Competitive Edge
Senores Pharmaceuticals Limited is a research-driven pharmaceutical company focusing on complex generics, critical care injectables, and APIs for regulated and emerging markets. The company operates a state-of-the-art manufacturing facility in Chhatral, India, which has approvals from regulatory agencies in over 10 countries.
With more than 260 registered products and 530 product applications, SPL is well-positioned for continued growth in the global pharmaceutical sector.
Key Financial Ratios & Market Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹2,590 Cr. |
| Current Price | ₹562 |
| Stock P/E | 82.3 |
| Industry P/E | 35.7 |
| Book Value | ₹ (N/A) |
| Price-to-Book Value | (N/A) |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 11.5% |
| Return on Equity (ROE) | 25.2% |
| Face Value | ₹10.0 |
| Promoter Holding | 45.8% |
| Debt-to-Equity Ratio | 1.26 |
| Pledged Percentage | 0.00% |
| Intrinsic Value | (N/A) |
| Graham Number | (N/A) |
| RSI (Relative Strength Index) | 54.4 |
| Earnings Per Share (EPS) | ₹10.3 |
| PEG Ratio | (N/A) |
| 200-Day Moving Average (DMA 200) | ₹549 |
| Debt | ₹258 Cr. |
| Free Cash Flow (Last 3 Years) | ₹-141 Cr. |
| Free Cash Flow (Last Year) | ₹-71.7 Cr. |
Outlook & Future Growth
The recent acquisition of 14 ANDAs is expected to be a major growth catalyst for Senores Pharmaceuticals, significantly expanding its product portfolio in the US market. Given its strong financial performance, increasing global footprint, and commitment to research-driven innovation, SPL is well-positioned for long-term value creation.
Investors and market analysts are optimistic about the company’s future growth trajectory, with the stock expected to gain further traction as SPL leverages this acquisition to enhance its revenue stream.
Conclusion
Senores Pharmaceuticals’ strategic acquisition of Dr. Reddy’s ANDAs is a game-changer, positioning the company for strong growth in the US generics market. With its aggressive expansion strategy, robust financials, and increasing market share, SPL remains a key player to watch in the pharmaceutical industry.
Would you consider investing in Senores Pharmaceuticals Limited based on its latest acquisition and growth prospects? Let us know in the comments!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.