Venus Remedies up 8% on order win from UNICEF for bacterial infection drug

The uptick in stock price came after the company announced that it has secured an award for its antibiotic product, Ceftriaxone 1 gm, from UNICEF

Venus Remedies shares soar: Shares of pharmaceutical company Venus Remedies soared as much as 8.39 per cent to hit an intraday high of Rs 384.95 per share on Thursday.

However, the stocks were trading off day’s highs. At 12:37 PM, Venus Remedies stock was trading 5.74 per cent higher at Rs 375.55 per share. In comparison, BSE Sensex was trading 0.36 per cent higher at 76,884.06 levels.

The uptick in stock price came after the company announced that it has secured an award for its antibiotic product, Ceftriaxone 1 gm, from United Nations Children's Fund (UNICEF) in the Beta Lactam tender.

 

In an exchange filing, the company said, “Venus Remedies is pleased to announce that the company has proudly reached a significant milestone by securing the prestigious award for its antibiotic product, Ceftriaxone 1 gm, from UNICEF in the Beta Lactam tender.”

Ceftriaxone is used to treat bacterial infections in many different parts of the body.

“Our Ceftriaxone 1 gm product has met and surpassed stringent quality criteria, demonstrating our dedication to producing top-tier pharmaceutical solutions. This award not only highlights our product's superior quality but also reinforces our role as a trusted partner in global health initiatives,” Venus Remedies said.

Earlier, the company had secured Good Manufacturing Practices (GMP) approval from UNICEF.

Headquartered in Haryana, Venus Remedies Limited is a research and development-driven global pharmaceutical company with operations spanning across 70 countries.

Financial performance

Venus Remedies’ profit fell 5 per cent on a year-on-year (Y-o-Y) basis to Rs 10.5 crore in the March quarter of FY24 (Q4FY24), from Rs 11.1 crore in the same quarter a year ago (Q4FY23).

The topline growth (revenue) zoomed 25.4 per cent Y-o-Y to Rs 195 crore in Q4FY24, as opposed to Rs 155.6 crore in Q4FY23.

Earnings before interest, tax, depreciation and amortisation (Ebitda) fell nearly 21 per cent to Rs 19.5 crore in Q4FY24, as against Rs 24.6 crore in Q4FY23. Consequently, margin squeezed 590 basis points to 10 per cent in the March quarter of financial year 2024, from 15.9 per cent in the March quarter of financial year 2023.

The market capitalisation of Venus Remedies is Rs 502 crore, according to Bombay Stock Exchange (BSE).

The 52-week high of the stock is Rs 429.60 while its 52-week low is Rs 222 per share.