stock of Pharmaceutical company surges by 16% following acquisition of manufacturing and selling rights for Magtein in India.
stock of Pharmaceutical company : Shares of one of the leading pharmaceutical stocks, specializing in the manufacturing of Active Pharmaceutical Ingredients (APIs), intermediates, formulations, and nutraceuticals, surged by 16 percent after securing exclusive licensing rights for the sale of Magnesium L Threonate in India.
Bajaj Healthcare Limited, with a market capitalization of Rs. 1,774.66 crores on Friday, saw its shares trading at Rs. 643.20, up by 16.4 percent, reaching a high of Rs. 654 per share compared to its previous closing price of Rs. 561.55 per share.
The company specializes in the manufacturing of APIs, intermediates, formulations, and nutraceuticals. Recently, Bajaj Healthcare Limited obtained exclusive rights from Threotech LLC for the manufacturing, distribution, and sale of the finished formulation of Magnesium L Threonate (Magtein®) in India. This agreement also opens up opportunities for marketing collaborations with leading pharmaceutical firms in India. Bajaj Healthcare is already supplying the API for Magtein® in the U.S., where the brand has a sales value of approximately USD 438 million, and now aims to strengthen its presence in the Indian market.
This development solidifies Bajaj Healthcare’s position as a trusted partner in the pharmaceutical industry, utilizing its strong domestic presence and manufacturing expertise to capitalize on the growing market potential for Magnesium L Threonate in India.
In terms of business segments, Bajaj Healthcare focuses on Active Pharmaceutical Ingredients (APIs) and is a major API manufacturer in India, exporting to over 50 countries. API manufacturing accounts for over 90 percent of its revenue, with a capacity of 730 MT per month. The company emphasizes research and development to support continuous growth.
Segment II: Finished Dosage Formulations (FDFs)
Bajaj Healthcare’s state-of-the-art manufacturing facility adheres to the highest standards set by USFDA, TGA (Australia), and MHRA (UK). The company specializes in producing tablets, capsules, and oral powders, all available in bulk quantities, which account for 10 percent of the total revenue. Our automated processes guarantee the production of high-quality formulations.
Segment III: Intermediates
Bajaj Healthcare is a leading manufacturer of intermediates such as CPCC and Chlorhexidine, with an annual capacity of 94 MT. These intermediates play a crucial role in supporting the production of Active Pharmaceutical Ingredients (API) and Finished Dosage Formulations (FDF), leading to improved cost-effectiveness and economies of scale.
Financials
In Q2FY24-25, Bajaj Healthcare experienced a significant increase in revenue, rising by 32.4 percent from Rs 102.43 crore to Rs 135.7 crore. Additionally, the company’s net profit saw a remarkable turnaround, shifting from a loss of Rs 3.46 crores to a profit of Rs 9.46 crore during the same period.
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