Marksans Pharma hits new high; soars 30% in 1 month on healthy Q2 results

Shares of Marksans Pharma hit a record high of Rs 343.85, surging 9 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes. The stock of the drug company surpassed its previous high of Rs 328.35 touched on September 20, 2024.

 

At 03:11 pm; Marksans Pharma was trading 7 per cent higher at Rs 337.15, as compared to 0.11 per cent decline in the BSE Sensex. The average trading volumes on the counter more-than-doubled with a combined 10.5 million shares changing hands on the NSE and BSE.

 

In the past one month, the stock rallied 30 per cent after the company’s gross margin expanded by 732bps year-on-year (YoY) with all-time high quarterly Earnings before interest, tax, depreciation and amortization (EBITDA) of Rs 135.7 crore in September 2024 quarter (Q2FY25). Growth was attributed to continued softening of raw material prices and a better product mix.

 

 

The company’s operating revenue grew 20.8 per cent YoY to Rs 641.9 crore driven by strong performance across all key markets, led by the US and followed by ANZ. Profit after tax jumped 16.6 per cent YoY at Rs 97.8 crore.

 

The management said the company continued to witness favourable raw material prices and improved product mix, thereby leading to a gross margin expansion. The management anticipates stronger performance in the coming quarters due to the company’s upcoming new launches, the onset of the winter season and scaling up of the TEVA facility.

 

Marksans Pharma is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulation in the global markets. The company's manufacturing facilities are approved by several leading regulatory agencies including USFDA, UKMHRA and Australian TGA. The company's robust product portfolio spreads over major therapeutic segments of CVS, CNS, Antidiabetic, Pain Management, Gastroenterological and Anti-allergies. The company is marketing these products globally.

 

Meanwhile, on Friday, November 22, Marksans Pharma announced tha it received final approval for the company’s Abbreviated New Drug Application (ANDA) for Loratadine Tablets USP 10 mg from USFDA.

 

They are indicated for the treatment of allergic rhinitis caused by pollen and upper respiratory tract allergy for over-the-counter (OTC) use. This product is generic version of Clartin tablet in the same strength of Bayer Healthcare, the company said in an exchange filing.

 

Loratadine is an antihistamine that treats symptoms such as itching, runny nose, watery eyes, and sneezing from "hay fever" and other allergies.