Marksans Pharma shares climb after USFDA's nod for allergic rhinitis drug

Shares of Marksans Pharma gained up to 3.23 per cent at Rs 319 a piece on the BSE in Friday’s intraday deals. The pharmaceutical company’s shares came in demand after the company disclosed that it has received a final approval on its drug application for Loratadine Tablets from the United States Food and Drug Administration (USFDA).

 

The drug is a generic version of Clartin tablet in the same strength of Bayer Healthcare.  

 

Loratadine Tablets are indicated for the treatment of allergic rhinitis caused by pollen and upper respiratory tract allergy for over-the-counter (OTC) use.  The drug is an antihistamine that treats symptoms such as itching, runny nose, watery eyes, and sneezing from "hay fever" and other allergies, the company said in an exchange filing. 

 

Q2 results

Marksans Pharma reported a 15.8 per cent rise in consolidated net profit to Rs 96.72 crore in the second quarter of financial year 2024-25 (Q2FY25), compared to Rs 83.52 crore in Q2 FY24. Revenue from operations increased by 20.83 per cent to Rs 641.92 crore during the quarter. Growth was driven by strong performance in the US market, followed by Australia and New Zealand (ANZ).

 

Research and Development (R&D) expenses during the quarter stood at Rs 10.7 crore, representing 1.7 per cent of consolidated revenue.  

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 19.1 per cent to Rs 136 crore, compared to Rs 113.9 crore in Q2FY24. However, the Ebitda margin saw a slight decline to 21.1 per cent in Q2FY25 from 21.4 per cent in the corresponding quarter of the previous year.  

 

The US and North America generated Rs 304.2 crore in revenue, marking a 37 per cent year-on-year (Y-o-Y) growth. The UK and Europe contributed Rs 246.7 crore, up 6 per cent Y-o-Y. The Australia and New Zealand business reported Rs 63.6 crore, registering a 31 per cent Y-o-Y increase. Revenue from the Rest of World (ROW) business grew marginally by 1 per cent Y-o-Y to Rs 27.5 crore.  

Marksans Pharma share price history

The company’s stock has outperformed the market year to date as it has risen 95 per cent, while gaining 125 per cent in the last one year. In comparison BSE Sensex has risen 8.2 per cent year to date and 18.4 per cent in a year. 

 

The company has a total market capitalisation of Rs 14,270.13 crore. Marksans Pharma shares are trading at a price to earnings multiple of 92.89 times and at an earning per share of Rs 3.39. 

 

At 1:04 PM; the shares of the company were trading 1.97 per cent higher at Rs 315.10 a piece. By comparison, the BSE Sensex was up 1.55 per cent at 78,350.66 level.