Torrent Pharmaceuticals rose 1.51% to Rs 1,371.60 at 14:25 IST on BSE after the company entered into a binding agreement to acquire the API manufacturing unit of Glochem Industries.
The announcement was made during market hours today, 30 June 2016.Meanwhile, the S&P BSE Sensex was up 317.27 points or 1.14% at 27045.19.
On BSE, so far 6,114 shares were traded in the counter as against average daily volume of 11,638 shares in the past one quarter. The stock hit a high of Rs 1,373 and a low of Rs 1,351.40 so far during the day. The stock had hit a record high of Rs 1,720 on 1 September 2015. The stock had hit a 52-week low of Rs 1,190 on 12 February 2016. The stock had underperformed the market over the past one month till 29 June 2016, falling 2.14% compared with Sensex's 0.27% gains. The stock had also underperformed the market in past one quarter, rising 0.4% as against Sensex's 5.52% rise.
The large-cap company has equity capital of Rs 84.61 crore. Face value per share is Rs 5.
Torrent Pharma has entered into a binding agreement to acquire the Active Pharmaceutical Ingredients (API) manufacturing unit of Hyderabad-based Glochem Industries along with a few Drug Master Files (DMF) as a going concern on slump sale basis. Torrent Pharma currently has five formulation manufacturing units and with this acquisition it will have 3 API facilities for the regulated markets, in the near future.
The API unit approved by the United States Food & Drug Administration (USFDA) and the European regulatory authorities is a multi-product facility, with a capacity to manufacture Advance Intermediates & Active Pharmaceutical Ingredients (APIs). This will be beneficial in company's growth trajectory. The acquisition will help Torrent Pharma in vertically integrating its Abbreviated New Drug Application (ANDA) filings in the future.
The facility located at JNPC Parawada District, Vizag, currently has three blocks for advance Intermediate manufacturing and four blocks for API manufacturing. The facility also has capabilities for on site development, analytical method development, quality control laboratory and a pilot plant.
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Jinesh Shah, Executive Director (operations) at Torrent Pharma said acquisition of the site will further help in backward integration and scale up of Torrent's manufacturing capacity to meet the growing demand from the international markets.
Torrent Pharmaceuticals' consolidated net profit surged 174.6% to Rs 357 crore on 29.9% rise in net sales to Rs 1473 crore in Q4 March 2016 over Q4 March 2015.
Torrent Pharma is the flagship company of the Torrent Group. The company is engaged in the manufacture of formulations and bulk drugs.
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