Shilpa Medicare rallies 6% on getting API nod from European regulator

Shares of Shilpa Medicare rose 6.23 per cent at Rs 917.20 per share on the BSE in Tuesday’s intraday deals. This came after the company received a suitability certificate from an European regulatory authority for the active pharmaceutical ingredient Octreotide. 

 

“This is to inform you that the Shilpa Medicare Limited’s 100 per cent subsidiary, Shilpa Pharma Lifesciences Limited received certificate of suitability (CEP) from EDQM (European Directorate for the Quality of Medicines & Healthcare) for API, Octreotide. Octreotide is synthetic peptide manufactured by Shilpa Pharma Lifesciences through solid phase synthesis,” the company said in a statement on Monday. 

 

The CEP certifies that a pharmaceutical substance meets the quality standards set out in the European Pharmacopoeia (EP).

 

 

Octreotide injection is used to manage severe diarrhoea and other symptoms associated with certain intestinal tumours, such as vasoactive intestinal peptide tumours (VIPomas) and metastatic carcinoid tumours that have spread within the body.

 

Octreotide is the second peptide molecule in Shilpa’ s peptide portfolio, the company said.  

 

Q2 results

Last week, the company reported a robust financial performance in its second quarter of financial year 2024-25 (Q2FY25).

 

The company registered a net profit of Rs 17.9 crore in Q2FY25 versus a net profit of Rs 1.6 crore in the year ago period. 

 

The company’s revenue from operations for the quarter stood at Rs 344 crore in the September quarter of FY25, reflecting an 9.8 per cent increase from Rs 313 crore in the previous year.  

 

Shilpa Medicare’s earnings before interest, tax, depreciation, and amortisation (Ebitda) came in at Rs 86 crore, soaring 42.7 per cent versus Rs 60.3 crore in the same quarter last year. Ebitda margin improved to 25 per cent versus 19.3 per cent in Q2FY24.

 

In Q2FY25, the largest contribution in sales came from the API (Active Pharmaceutical Ingredients) segment, which accounted for 55 per cent of the total revenue at Rs 192.8 crore. The formulation segment contributed 34 per cent of the revenue, amounting to Rs 119.6 crore. Biologicals made up 9 per cent of the revenue with Rs 30.7 crore, while the Others category accounted for the remaining 2 per cent at Rs 5.7 crore.

 

At 9:58 AM; the shares of the company pared some of their gains, and advanced 3.69 per cent at Rs 710.95 a piece. By comparison, the BSE Sensex was up 1.07 per cent at 78,168.81level.