Smallcap pharma stock flies 10% on high demand API filing to EU regulator

Shares of Sigachi Industries surged 10.11 per cent at Rs 54.90 per share on the BSE in Friday’s intraday trade. This came after the pharma company said that its group company Trimax Biosciences has successfully processed a CEP filing submission of an active pharmaceutical ingredient (API) with a European regulator.

 

A CEP filing, or Certification of Suitability filing, is the process of submitting a certificate that verifies a pharmaceutical ingredient's compliance with the European Pharmacopoeia (EP).

 

The API application of ‘Propafenone Hydrochloride’ was submitted with the European Directorate for the Quality of Medicines & Health Care (EDQM). 

 

Propafenone Hydrochloride is widely used in the treatment of cardiac arrhythmias, and is a high demand API with a current global market size of $1.2 billion, the company said in a statement. 

 

The API’s market is poised for robust growth, with projections reaching $2.1 billion by 2032, reflecting a compound annual growth rate of 7 per cent over the forecast period. This growth is driven by the increasing prevalence of cardiovascular diseases, growing adoption of generic medications, and rising healthcare expenditure globally. 

 

Sigachi Industries reported a 39.15 per cent year-on-year increase in revenue, reaching Rs 139.54 crore for Q2 of 2024-2025. On a quarterly basis, the company's revenue grew by 43.28 per cent compared to the previous three months.

 

In terms of net profit, Sigachi Industries Ltd saw a 43.76 per cent rise year-on-year, reaching Rs 21.78 crore for Q2 2024-2025. On a quarterly basis, net profits surged by 65.5 per cent compared to the previous quarter.

 

On the equities side, Sigachi Industries’s stock has underperformed the market year to date as it has risen 7 per cent, while slipping 6 per cent in the last one year. In comparison BSE Sensex has risen 9 per cent year to date and 18 per cent in a year. 

 

The company has a total market capitalisation of Rs 1,749.28 crore.  Its shares are trading at a price to earnings multiple of 31.80 times and at an earning per share of Rs 1.60. 

 

At 11:16 AM; the shares of the company were trading 8.97 per cent higher at Rs 55.62 a piece. By comparison, the BSE Sensex was up 0.95 per cent at 79,797.68 level.