IOLCP's stock rallies 10% after securing nod for cholesterol drug

Shares of IOL Chemicals and Pharmaceuticals (IOLCP) rallied 9.7 per cent at Rs 449 per share on the BSE in Tuesday’s intraday trade. The stock price jump came after the company got China's drug regulatory authority NMPA's nod for cholesterol drug Fenofibrate, allowing the company to export it to the Chinese market. 

Fenofibrate is used in the treatment of high cholesterol and triglyceride levels in the blood.

“We wish to inform you that the China’s Drug Regulatory Authority viz National Medical Products Administration (NMPA), China has approved the product “Fenofibrate” manufactured by the Company. This will enable the Company to export its Fenofibrate API in the China market,” the company said in an exchange filing. 

The company specialises in the manufacturing and sale of pharmaceutical and chemical products.

In the fourth quarter of fiscal year 2023-24, the company saw a 2.8 per cent year on year growth in total sales at Rs 573 crore. The company’s profit after tax surged by 135 per cent to Rs 65 crore in Q4FY24 from Rs 37 crore in the year ago period. 

The small company has total market cap of 2,547 crore and is presently trading at a price to earnings multiple of 17.74 with an earning per share of Rs 23.07.  

The stock price of the company has zoomed 36.4 per cent in the last one month, while rallying by 69.5 per cent in the last one year. 

At 10:55 AM; the stock of the company was trading 6 per cent higher at Rs 434 per share on the BSE. In comparison, the BSE Sensex was down marginally by 0.02 per cent at 79,493 levels.