Pharma stock jumps 12% after reporting 76% net profit growth in Q3

The shares of leading global pharmaceutical gained up to 12 percent after the company’s net profit and revenue stretched by 76 percent and 40 percent YoY, respectively in Q3FY25.

Price movement

With a market capitalization of Rs 29,156.60 crore, the shares of Suven Pharmaceuticals Ltd were trading at Rs 1,146.70 per share, increasing around 10 percent as compared to the previous closing price of Rs 1,045.70 apiece.

Reason for Rise

The shares of Suven Pharmaceuticals Ltd have seen significant movement after announcing its financial performance in which revenue is magnified by 40 percent on a year-on-year basis from Rs 220 crore in Q3FY24 to Rs 307 crore in Q3FY25. However, on a Quarter-on-Quarter basis, revenue zoomed by 19 percent from Rs 258 crore in Q2FY25 to Rs 307 crore in Q3FY25.

Moreover, net profit jumped by 76 percent on a yearly basis from Rs 47 crore in Q3FY24 to Rs 83 crore in Q3FY25, meanwhile, on a quarter-on-quarter basis, net profit slightly up by 1.2 percent from Rs 82 crore in Q2FY25 to Rs 83 crore in Q3FY25.

Recent Acquisition

Suven Pharmaceuticals plans to acquire a 56 percent stake in NJ Bio, a Princeton-based ADC leader, to strengthen its global CDMO presence. The deal enhances U.S. expansion and ADC capabilities, leveraging CEO Dr. Naresh Jain’s expertise. NJ Bio projects $32M revenue with a 70 percent CAGR.

Also read: Honasa Consumer jumps 8% after reporting ₹26 Cr profit in Q3 against ₹18 Cr loss in Q2

Operational Capabilities

NJ Bio offers robust end-to-end ADC chemistry capabilities, including payload-linker synthesis, bioconjugation, and bioanalytical services. Its integration with Suven’s platform enhances synergies and service offerings. Additionally, NJ Bio specializes in expanded drug conjugates and new modalities like radioconjugates and mRNA technologies.

Market Positioning

Suven plans to leverage NJ Bio’s expertise in linkers and bioconjugation to strengthen payload manufacturing. With minimal customer overlap, the merger unlocks cross-selling potential. Growing demand for integrated ADC services positions Suven competitively, expanding its market reach and enhancing its industry standing.

Future Growth

Management expects EBITDA margins of 20%+ post-acquisition, leveraging operations and strategic investments. Full cost benefits may take 1-2 years, though immediate customer synergies are anticipated. While competition in ADC CDMO is intense, Suven’s unique technological strengths are expected to provide a competitive edge.

Company Profile

Suven Pharmaceuticals Limited is engaged in the business of development and manufacturing of New Chemical Entity (NCE) based Intermediates, Active Pharmaceutical Ingredients (API), Specialty Chemicals, and others.

Written by Abhishek Singh

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