J B Chemicals moves up after USFDA nod for anti-hypertensive drug

J B Chemicals & Pharmaceuticals rose 0.9% to Rs 301 at 11:00 IST on BSE after the company said that the US drug regulator has approved the company's supplementary abbreviated new drug application for Atenolol Tablets.

The announcement was made before market hours today, 13 December 2017.

Meanwhile, the S&P BSE Sensex was up 130.77 points, or 0.39%, to 33,358.76. The S&P BSE Small-Cap index was up 71.30 points, or 0.39%, to 18,199.22, same compared to Sensex's gains.

On the BSE, 11,409 shares were traded in the counter so far as against average daily volume of 29,791 shares in the past one quarter. The stock had hit a high of Rs 308.25 and a low of Rs 300.60 so far during the day. The stock had hit a 52-week high of Rs 367.65 on 2 February 2017. The stock had hit a 52-week low of Rs 255 on 28 September 2017.

The stock had outperformed the market over the past one month till 12 December 2017, falling 0.23% compared with the Sensex's 0.26% fall. The scrip also outperformed the market over the past one quarter, gaining 7.32% as against the Sensex's 3.33% rise. The scrip had, however, underperformed the market over the past one year, falling 13.76% as against the Sensex's 25.32% rise.

The small-cap company has an equity capital of Rs 16.71 crore. Face value per share is Rs 2.

J B Chemicals & Pharmaceuticals said that the US drug regulator has approved the company's supplementary abbreviated new drug application (sANDA) for Atenolol Tablets USP 25 mg, 50 mg and 100 mg. (anti-hypertensive) manufactured using company's own bulk drug active pharmaceutical ingredient (API).

The company has initiated this change as a part of its plan to gradually backward integrate US formulations business. The approval is expected to boost company's US sales.

The company could not commercialize this formulation earlier due to problems associated with external API supplier. This approval will help company supply these formulations with its own API.

The company plans to commercialize this product in the next quarter. Currently, the market for this product in US is about $70 million. The company is focused on US business and this approval will help company grow its exports.

J B Chemicals & Pharmaceuticals' net profit rose 14.4% to Rs 51.72 crore on 16.1% rise in net sales to Rs 349.93 crore in Q2 September 2017 over Q2 September 2016.

J B Chemicals & Pharmaceuticals is a pharmaceutical company manufacturing & marketing a diverse range of pharmaceutical formulations, herbal remedies and active pharmaceutical ingredient (API)'s.

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