Pharma stock jumps 7% after acquiring 14 generic drug approvals (ANDAs) from Dr. Reddy’s Laboratories

During Tuesday’s trading session, the shares of a global, research-driven pharmaceutical company engaged in developing and manufacturing a wide range of pharmaceutical products surged nearly 7.3 percent on BSE, after the company announced acquiring 14 ANDAs from Dr Reddy’s Laboratories. 

Price Movement

With a market cap of Rs. 2,597 crores, the shares of Senores Pharmaceuticals Limited closed in the green at Rs. 563.95 on BSE, up by around 6.3 percent, as compared to its previous closing price of Rs. 530.4. The stock has delivered positive returns of nearly 1.1 percent over a one-year period, as well as around 6 percent returns in the last one month. 

What’s the News

Senores Pharmaceuticals Limited (SPL), through its wholly-owned subsidiary Senores Pharmaceuticals, Inc., USA, has signed agreements to acquire a portfolio of 14 Abbreviated New Drug Applications (ANDAs) from Dr. Reddy’s Laboratories and its applicable affiliates, according to the latest exchange filings. 

The portfolio includes 13 ANDAs that are USFDA-approved and 1 ANDA pending USFDA approval. The addressable market opportunity for the acquired ANDAs in the USA is ~$421 million (MAT December 2024) according to IQVIA, and ~$1.13 billion (MAT September 2024) according to specialty data aggregator Symphony. 

The acquisition will be financed through the proceeds raised from SPL’s Initial Public Offering (IPO), in alignment with the objectives outlined in the IPO’s Red Herring Prospectus. 

The company’s Managing Director commented, “These products can be distributed through multiple/diverse channels, with large requirements in government, retail and specialty clinics. This Portfolio of products significantly increases our products offering in the US, and also it has a significant value in other Regulated and Semi-Regulated markets of the world.”

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Financials

Senores Pharmaceuticals reported a significant growth in revenue from operations, experiencing a year-on-year increase of nearly 31 percent, rising from Rs. 78.7 crores in Q3 FY24 to Rs. 103 crores in Q3 FY25. 

Similarly, during the same period, the company’s net profit increased from Rs. 7 crores to Rs. 16 crores, representing an impressive growth of around 128.6 percent YoY. EBITDA for Q3 FY25 increased by about 92 percent YoY to Rs. 29 crores, up from Rs. 15 crores in Q3 FY24, while the EBITDA margins grew by 810 bps to 27.3 percent, from 19.2 percent, over the same period. 

About the Company

Senores Pharmaceuticals Limited is a global, research-driven pharmaceutical company focused on developing and manufacturing a wide range of pharmaceutical products for the US, Canada, and other regulated and emerging markets across various therapeutic areas and dosage forms. 

The company specializes in complex generics, critical care injectables, and Active Pharmaceutical Ingredients (API). SPL’s Chhatral manufacturing facility is approved by regulatory bodies in over 10 countries, with more than 260 product registrations and 530 product applications. 

Written by Shivani Singh 

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