Lincoln Pharmaceuticals rose 2.32% to Rs 167.65 after the company said it received the European Union (EU) Good Manufacturing Practice (GMP) certification from Germany FDA for its manufacturing facility located at Khatraj in Gujarat.
The inspection was done by the regulatory agency in December 2019 followed by final approval in May 2020. The company manufactures wide-range of drugs at its Khatraj facility and includes anti-infective, respiratory system, gynaecology, dermatology, gastro, pain management, cardio & CNS, anti-bacterial, antidiabetic, anti-malaria among others.
The certification will allow the company to market its products in all the 27 member countries of EU and will also give access to European Economic Area (EEA) countries. The company looks to enter the EU markets very soon with its dermatology, gastro and pain management products and gradually expand product portfolio, the company said in release on Tuesday (19 May).
Mahendra Patel, managing director, Lincoln Pharmaceuticals, said, "We are very pleased and excited to receive the EU GMP accreditation. This will be an important stepping stone in the journey of the company and will help to expand its presence in more regulated markets. The approval is valid for all three departments - tablet, capsule and cream & ointment, which will cover wide range of pharmaceutical formulation manufactured by the company. EU GMP approval is the result of stringent quality and compliance norms followed at Lincoln Pharma across all departments especially the R&D and compliance. The certification will allow us to address the growing needs of patients in the EU markets and provide affordable and innovative medicines."
With the EU certification, the company aims to expand its business network to 90 plus countries. The firm currently exports to 60 plus countries including East & West Africa, Central & Latin America and Southeast Asia and has got many product registrations in these countries and is also awarded with number of global tenders.
Export business has shown remarkable growth in the last few years. Exports have increased to 61% of total sales in FY20 from 11% of total sales in FY11. The firm has almost doubled the export turnover in FY20 as compared to FY18. Export of the company stood at Rs 227 crore in FY20 as compared to Rs 197 crore in FY19, a growth of 15% YoY, the company said.
Lincoln Pharmaceuticals manufactures therapeutic products. The company also manufactures dosage forms like tablets, capsules, injectables, syrups, ointments.
On a consolidated basis, the company's net profit rose 19.2% to Rs 10.91 crore on a 16.7% increase in net sales to Rs 98.52 crore in Q3 December 2019 over Q3 December 2018.
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