Shares of Bajaj Healthcare surged 11% in early deals on Thursday after the company said it has received approval from the Defence Research and Development Organisation (DRDO) to manufacture and market '2-Deoxy-D-Glucose' (2-DG).
The oral drug is used in the treatment for Covid-19.
The 2-DG drug has been developed by the DRDO laboratory's Institute of Nuclear Medicine and Allied Sciences (INMAS), in collaboration with the pharma major Dr Reddy’s Laboratories.
It has already received emergency approval from the Drugs Controller General of India (DCGI) for use on covid-19 patients in the country. The drug comes in powder form and retails at Rs990 per sachet.
2-DG helps in faster recovery of hospitalised patients and reduces supplemental oxygen dependence. It works by selectively accumulating in the virus-infected cells and prevents virus growth by stopping viral synthesis and energy production.
It can be administered only upon prescription and under the supervision of a qualified physician to hospitalised moderate to severe covid patients as an adjunct therapy to the existing standard of care.
Commenting on license received from DRDO for 2-Deoxy-D-Glucose, Anil Jain, joint managing director, Bajaj Healthcare said, "We hope the availability of an effective treatment such as 2-DG will considerably ease the pressure and offer patients much needed and timely therapy option.
Most patients ailing from moderate to severe symptoms can benefit from the use of Deoxy-D-Glucose.
Bajaj Healthcare seeks compulsory license for Covid-19 drug
On 28 June, drugmaker Bajaj Healthcare requested the Indian patent office to grant a compulsory licence to make Baricitinib, an Eli Lilly drug, which has shown promise in treating Covid-19.
Bajaj Healthcare, which makes Covid drugs like favipiravir and ivermectin, has sought permission to make both the active pharmaceutical ingredient (API) and the formulation of Baricitinib.
The company approached Eli Lilly on two occasions, to sign the voluntary licence for manufacturing and supply of Covid-19 drug Baricitinib.
Company’s board approves listing on NSE
On Monday, Bajaj Healthcare informed the exchanges about listing of equity shares on National Stock Exchange (NSE).
The board of directors of the company has considered and approved the listing of 13.7 m equity shares of Rs10 each of the company on NSE.
Key financial highlights for the March 2021 quarter
The company reported an 11.5% year on year (YoY) rise in consolidated net revenues for the January-March quarter at Rs1.3 billion.
Net profit in the quarter surged 69.4% to Rs212.8 million on the back of higher sales and lower raw material costs.
The bulk drugs vertical reported 13% higher sales at Rs1.3 billion, while the formulations vertical saw its revenues fall 17% at Rs49.4 million.
The earnings before interest, depreciation, and tax (EBIDTA) contribution was sharply higher for the bulk drugs business and flat for formulations despite the fall in sales in the formulations vertical.
Equitymaster's view on the pharma sector
On the pharma sector, Tanushree Banerjee, Co-Head of Research at Equitymaster, and editor of the premium stock recommendation service StockSelect, said, "The second Covid wave has given a new lease of life to pharma stocks. As the sector continues to invest in capacities for new drugs, the profitability will depend on the companies' ability to seek USFDA approval for the plants. Or their ability to tie up with MNC pharma for producing variants of their vaccine."
How the stock markets reacted to Bajaj Healthcare
Shares of Bajaj Healthcare opened the day at Rs950 on the BSE and closed at Rs978.3, up 7.4% from previous close.
At its current price, it is trading at a P/E of 16.2.
The share touched its 52-week high of ₹1,009.8 and 52-week low of ₹277 on 8 July 2021 and 8 July 2020, respectively.
Over the last 30 days, the Bajaj Healthcare share price has risen 28.4%. Over the last one year, the stock is up 243.6%.
About Bajaj Healthcare
Bajaj Healthcare is a leading manufacturer of APIs, intermediates and formulations established in the year 1993. It specialises in manufacturing of amino acids, intermediates, API, formulations, and nutraceuticals.
The company has state-of-art manufacturing facilities, of which six units are dedicated to APIs, two to intermediates and one unit for formulations.
These facilities are designed to meet requirements of both advanced as well as emerging market opportunities. Bajaj Healthcare has a strong presence globally in countries such as Europe, the US, Australia, Africa, Middle East, and South America.
(This article is syndicated from Equitymaster.com)
