Wanbury shares locked in 5% upper circuit on planned API launches, pipeline

Shares of Wanbury locked in 5 per cent upper circuit on the BSE in Thursday’s intraday trade. By comparison, the BSE Sensex was trading 0.25 per cent higher at 81,730 levels at around 12:22 PM IST. 

The share price of the company has appreciated 91.7 per cent year to date against a rise of 13 per cent in the benchmark BSE Sensex during this period

Today's upmove in the stock price, however, came after the company in an exchange filing disclosed that it will launch two new active pharmaceutical ingredients. These APIs include Dextromethorphan and Ketamine. 

Dextromethorphan is a cough suppressant used in many cough and cold medicines, while Ketamine is a dissociative anaesthetic used medically for induction and maintenance of anaesthesia. 

The company also revealed that it has five API products currently in the pipeline that include Rivaroxaban, Quetiapine Fumarate,  Montelukast Sodium, Imeglimin HCl, Sitagliptin Phosphate Monohydrate. 

Wanbury has seven commercially available APIs in the market that include anti-diabetic, antidepressants and anti-inflammatory APIs, according to the filing. 

For the April-June quarter of financial year 2024-25 (Q1FY25), Wanbury reported a net profit of Rs 1 crore for the June 2024 quarter. This compares to Rs 4.7 crore in the same period of the previous fiscal year. Revenue from operations slipped to Rs 131 crore from Rs 146 crore.

The company has a total market capitalisation of Rs 812.58 crore. Its shares are trading at a price to earnings multiple of 28.93 times with an earning per share of Rs 8.17, according to data available on BSE. 

Wanbury focuses on Active Pharmaceutical Ingredient (API) sales and marketing across over 50 countries, with a strong formulation presence in India. The company offers a portfolio of over 13 API products, including being the largest global manufacturer of Metformin, producing over 8,500 tons annually.