Neuland Laboratories rose 2.34% to Rs 260 at 14:24 IST on BSE after the company said it has opened a new manufacturing facility in Hyderabad, constructed as part of its collaboration with Tokyo-based API Corporation.
The announcement was made on Tuesday, 8 April 2014. The stock market was closed on that day, on account of Ram Navami.
Meanwhile, the S&P BSE Sensex was up 210.32 points or 0.94% at 22,553.77.
On BSE, so far 1,007 shares were traded in the counter as against average daily volume of 14,578 shares in the past one quarter.
The stock hit a high of Rs 265 and a low of Rs 255.15 so far during the day. The stock had hit a record high of Rs 370.40 on 19 December 2013. The stock had hit a 52-week low of Rs 88.50 on 13 June 2013.
The stock had underperformed the market over the past one month till 7 April 2014, declining 4.06% compared with the Sensex's 1.93% rise. The scrip had also underperformed the market in past one quarter, sliding 24.82% as against Sensex's 7.97% rise.
The small-cap company has equity capital is Rs 7.66 crore. Face value per share is Rs 10.
Neuland Laboratories said that the new manufacturing facility, which is located in a Neuland complex in Pashamylaram, Hyderabad, is the first manufacturing facility that API Corporation (APIC) has established outside of Japan.
Pursuant to an agreement entered into in March, 2013, Neuland constructed and will operate these manufacturing facilities dedicated to providing APIC with capacity for meeting the needs of its customers for pharmaceutical APIs and intermediates.
Kiyoshi Kondo, President and CEO of APIC said, "We welcome the inauguration of our dedicated Neuland manufacturing facility, a world-class operation that has come online just a year after our collaboration agreement was signed. This facility will benefit our growing customer base by rapidly increasing our capacity to deliver high quality, competitively-priced APIs and intermediates in partnership with Neuland, a company with a long history of outstanding quality and regulatory excellence".
"We are pleased to inaugurate these new state-of-the-art manufacturing facilities developed as part of our collaboration with APIC", said Dr. D.R. Rao, Chairman and Managing Director of Neuland Labs. "This arrangement allows APIC to expand their business in Japan in a timely and cost-effective way, while also helping to raise Neuland's profile as a quality supplier of APIs and intermediates to the Japanese market", M. Rao added.
Tokyo-based API Corporation (APIC) is healthcare unit of Mitsubishi Chemical Holdings Group that produces APIs, intermediates and investigational new drugs, along with fine chemicals and reagents.
Neuland Laboratories' net profit surged 108.6% to Rs 6.82 crore on 22.8% growth in net sales to Rs 130.83 crore in Q3 December 2013 over Q3 December 2012.
For 30 years, Neuland Labs has been at the forefront of manufacturing APIs through its cGMP manufacturing facilities, working with customers in 85 countries.
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