The trading volumes on the counter have more than doubled with a combined 268,024 equity shares changed hands on the BSE and NSE till 10:08 am. In comparison, the S&P BSE Sensex was up marginally by 0.17% at 35,952 points.
SMS Lifesciences India is presently engaged in the business of manufacturing, buying, selling, offering consultancy, importing and exporting, acting as commission agents and generally dealing with of all types of organic & inorganic chemicals, pharmaceuticals, active pharmaceutical ingredients (API) and intermediates.
The stock of pharmaceutical company surged 72% from its recent low of Rs 395 on November 7, 2018, after reported robust earnings growth in the September quarter (Q2FY19). In comparison, the benchmark index was up 2% during the same period.
The company had posted a net profit of Rs 4.41 crore in Q2FY19 against Rs 1.02 crore in Q2FY18. Operational revenue during the quarter grew 75% at Rs 89.20 crore over the previous year quarter.
SMS Lifesciences said it has successfully completed US Food and Drug Administration (FDA) audit during April 2018 of Unit 1, Khazipally, and Hyderabad. This is the first FDA audit of this site in 30 years of its operations. This will help in enhancing the sale of intermediates to regulated markets and API in key markets. Also, this site has approval from Japan PMDA, Korea FDA, COFEPRIS Mexico and WHO GMP.
In a bid to revive India’s API and bulk drug market, the Government has suggested setting up of mega bulk drug parks, a move that is expected to boost domestic production. The Government has also proposed that formulations produced from indigenous API and its intermediates (the raw material for manufacturing API) be given preference in Government procurements. The move gains significance given India’s dependence on China for bulk drugs, the company said in their 2018 annual report.
More than 75% of India’s bulk drug imports come from China, according to the department of pharmaceuticals.