This pharma stock has zoomed over 10,000% in 96 trading days

Orchid Pharma shares were locked in the upper circuit for the 96th straight trading day

Shares of Orchid Pharma were locked in the upper circuit for the 96th straight trading day, up 5 per cent at Rs 1,839.65 on the BSE in Friday's session. The stock has zoomed 102 times or 10,120 per cent from the level of Rs 18 since its relisting on November 3, 2020.

Currently, Orchid Pharma is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

The company has a total of 40.81 million outstanding shares, of which 98.04 per cent or 40.01 million shares are with the promoter Dhanuka Laboratories, according to the December 2020 shareholding pattern data. Dhanuka Laboratories took over the pharma company under the National Company Law Tribunal (NCLT) resolution process.

The public shareholders held a mere 1.93 per cent holding in the firm, of which 1.19 per cent stake was with the financial institutions and banks while individual shareholders held 0.51 per cent stake in the company, the data shows.

Orchid Pharma is one of the leading pharmaceutical companies in India, headquartered in Chennai and involved in the development, manufacture and marketing of diverse bulk actives, formulations and nutraceuticals with exports spanning over 40 countries.

For the first nine months (April-December) of the financial year 2020-21 (9MFY21), Orchid Pharma had reported a consolidated net loss of Rs 91.80 crore as against a loss of Rs 92.21 crore in 9MFY20. The company had posted a consolidated net loss of Rs 131.07 crore during the entire previous financial year 2019-20 (FY20).

The company’s new management, while commenting on the future outlook in its financial year 2019-20 (FY20) annual report, said that with the implementation of the resolution plan, the company is hopeful and confident of accomplishing improved sales and Ebitda (earnings before interest, taxes, depreciation, and amortization) during the course of time.

During FY20, API (active pharmaceutical ingredient) manufacturing facility located at Alathur, Tamil Nadu and FDF (finished dosage form) manufacturing facility located at Irrungattukottai, Tamil Nadu underwent inspection by the United States Food and Drug Administration (USFDA) regulatory agency. The inspection was successfully completed and later USFDA has issued Establishment Inspection Report (EIR) for both the facilities, the company said.

In the generic formulations domain, Orchid's cumulative abbreviated new drug application (ANDA) approvals for the US market stood at 40. In the European Union (EU) region, the cumulative count of the Marketing Authorisation (MA) active approvals stood at 2 in the NPNC segment. In the API (Active Pharmaceutical Ingredients) domain, Orchid's cumulative lings of US DMF stand at 76, it added.