Pharma stock jumps 7% after receiving approval for its drug from NMPA, China

The shares of the Specialty Chemicals manufacturer gained up to 7 percent after the company received approval from the Center for Drug Evaluation (CDE) for its product.

Price movement

With a market capitalization of Rs 2,011.54 crore, the shares of IOL Chemicals & Pharmaceuticals Ltd were trading at Rs 68.66 per share, increasing around 4.95 percent as compared to the previous closing price of Rs 65.42 apiece.

Reason for Rise

The shares of IOL Chemicals & Pharmaceuticals Ltd have seen bullish movement after its product, “Ibuprofen,” has received approval from the Center for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA), China.

Additionally, this approval permits the company to export Ibuprofen to China. Ibuprofen, a widely used NSAID, is known for its effectiveness in alleviating pain, reducing inflammation, and controlling fever, thereby expanding the Company’s global footprint and tapping into a significant pharmaceutical market opportunity in China.

Financial Growth

Looking forward to the company’s financial performance, revenue magnified by 1 percent from Rs 520 crore in Q3FY24 to Rs 523 crore in Q3FY25, Further, during the same time frame, net profit plummeted by 9 percent from Rs 23 crore to Rs 21 crore.

Also read: KFin Technologies Jumps Over 5% After Reporting Q4 Results; Announces Dividend

Market share

IOL Chemicals and Pharmaceuticals Ltd (IOLCP) is the world’s largest Ibuprofen producer, holding around 30 percent of the global market share. It is the only company globally with complete backward integration across all intermediate stages of Ibuprofen, boasting a production capacity exceeding 12,000 metric tonnes.

Industry Overview

India’s API market, growing at a 13.7 percent CAGR, contributes 8 percent to global production through 500 manufacturers; as a global generics leader, it produces 60,000 brands. FY24 imports rose 4.12%, valued for affordability and quality, Indian pharmaceuticals are central to a $130 billion industry projected by 2030.

Expansition

IOL Chemicals is expanding beyond Ibuprofen into key therapeutic areas with products like Paracetamol, Lamotrigine, Metformin, Clopidogrel, and Pantoprazole. These APIs are backed by dedicated facilities, backward integration, and global regulatory filings (US/EU/ANVISA). The company’s diversification strengthens its global pharmaceutical presence and broadens its product portfolio across critical health segments.

Company overview

IOL Chemicals and Pharmaceuticals Limited is an India-based active pharma ingredients (API) based pharmaceutical company. The Company’s APIs portfolio covers various therapeutic categories, such as pain management, anti-diabetic, anti-hypertensive, and anti-convulsant, amongst others.

Written by Abhishek Singh

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