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This pharmaceutical stock nearly doubled within 3 months; zooms 17% today

Bajaj Healthcare shares hit a record high of Rs 655 and rallied 17% on the BSE in Friday's intraday trade after it received an exclusive right to make and market Magtein in India, from Threotech

A Teflon resilience in markets that won’t let declines stick

SI Reporter Mumbai

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Shares of Bajaj Healthcare hit a record high of Rs 655, as they rallied 17 per cent on the BSE in Friday’s intraday trade in an otherwise weak market after the company received an exclusive right for the manufacturing, distribution and sales of Magtein in India, from Threotech. 
 
The stock of the pharmaceutical company has surpassed its previous high of Rs 654.05 touched on January 7, 2025. In comparison, the BSE Sensex was down 0.6 per cent at 76,575.21 at 10:48 AM. The average trading volumes on the counter more than doubled, with a combined 2.54 million equity shares changing hands on the NSE and BSE so far.
 
 
A leading manufacturer of active pharmaceutical ingredients (APIs), intermediates and formulations, Bajaj Healthcare, in an exchange filing, said the company has received exclusive rights for manufacturing, distribution and sales of the finished formulation of the product Magnesium L Threonate (Magtein) in India from the rights holder, Threotech LLC.
 
Threotech LLC has granted Bajaj Healthcare the licensing rights to manufacture finished formulation of Magtein along with the rights to enter into marketing collaborations with leading branded pharmaceutical firms for the Indian market.
 
The company is already supplying the API Magtein, to the patent holder in United States of America (USA). The API is supplied by Bajaj Healthcare for the brand Magtein in the USA as per an exclusive arrangement between the two companies. The brand Magtein by Threotech LLC has a sales value of approx. $438 million, Bajaj Healthcare said in a press release.
 
Meanwhile, within three months, the stock price of Bajaj Healthcare has nearly doubled, or zoomed 97 per cent from the level of Rs 333 on October 28, 2024, as the company reported strong earnings for the quarter ended September 2024 (Q2FY25).
 
The company posted profit after tax from continuing operations at Rs 83.4 crore, an increase of 62.9 per cent as compared to Rs 51.2 crore in the year-ago quarter. Revenue from operations grew 31.5 per cent year-on-year to Rs 1,330.90 crore.
 
Bajaj Healthcare said it has signed a development and supply agreement with a European partner for an API for clinical trials. Future supplies will be from the FDA-approved Savli, Vadodara, unit. The company further said it is actively working on new product development to expand its portfolio and reduce dependency on the top revenue-generating products. 
 
It is continuously scaling up the Opium Processing segment, witnessing surging quarterly run-rates in terms of both revenues and profitability. "The segment has quickly become a meaningful growth driver for our overall business," the company's management said. It added that the company is focused on expanding capacity to meet increasing government requirements and sustain its high growth trajectory going forward.
 

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First Published: Jan 17 2025 | 11:35 AM IST

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