IOL Chemicals zooms 5% on drug nod from European regulator: details here

IOL Chemicals and Pharmaceuticals stock surged up to 4.59 per cent at Rs 415.15 per share on the BSE in Wednesday’s intraday trade. This came after the company on Tuesday informed the exchanges on receiving a certificate of suitability from the European Directorate for the Quality of Medicines and Health Care (EDQM) for its hypertension drug.

“We wish to inform you that EDQM has issued a Certificate of Suitability for “Valsartan” on 23rd July 2024. This certification will enable the Company to export this product in European and other CEP accepting countries. Valsartan is used to treat high blood pressure (hypertension),” the company said in an exchange filing on Tuesday.

Founded in 1986, IOLCP is an Indian drugmaker specialising in generics and organic chemicals sector. The company has a presence across multiple therapeutic categories including pain management, anti-diabetic, anti-hypertensive, and anticonvulsants.

In the fourth quarter of the fiscal year 2023-2024, IOL Chemicals & Pharmaceuticals Ltd. reported a decline in both revenue and net profit compared to the same period the previous year. The company's revenue fell by 14.18 per cent year-on-year to Rs 511.44 crore. On a quarterly basis, revenue decreased by 3.28 per cent compared to the previous three months.

Net profit dropped 57.36 per cent year-on-year, amounting to Rs 27.62 crore in Q4FY24. However, there was a quarterly increase of 19.67 per cent in net profits compared to the preceding quarter.

The pharma firm has a total market capitalisation of Rs 2,436.57 crore, according to BSE. The company’s shares are trading at a price to earnings multiple of 17.21 times with an earning per share of Rs 23.07.

At 12:30 PM; the shares of the pharma company were trading 4.57 per cent higher at Rs 415.05 per share on the BSE. By comparison, the BSE Sensex was down 0.71 per cent at 79,854 levels.