Pharma stock jumps over 4% after expanding its Business in South Africa

During Monday’s trading session, the shares of a company engaged in the manufacturing and marketing of pharmaceutical formulations in overseas and domestic markets surged 4.6 percent on BSE, after entering into an agreement with a prominent South African business conglomerate.

Price Movement:

With a market cap of Rs. 613 crores, at 10:16 a.m., the shares of Medicamen Biotech Limited were trading in the green at Rs. 482.05, up by around 0.2 percent, as against its previous closing price of Rs. 481.15.

The stock has delivered positive returns of nearly 6.6 percent over a one-year period, while around 5 percent of negative returns in the last one month.

What’s the news:

As per the latest regulatory filings, Medicamen Biotech Limited (MBL) announced entering into an agreement with a prominent South African business conglomerate for the registration and marketing of its products in the region. South Africa, with a $4 billion pharmaceutical market, is categorised as a regulated market.

The recent European Union approval of MBL’s plant has opened new opportunities, aligning with the company’s strategic goal of global expansion. The management is confident that this milestone will help strengthen its presence in regulated markets and drive future growth.

Previous News:

19th February: MBL entered into a Manufacturing & Supply Agreement with a leading pharmaceutical distributor and marketing company in the US and Europe. The agreement, which spans 10 years, involves using MBL’s USFDA-approved Oncology Unit to manufacture products. 

The facility will leverage its manufacturing and R&D capabilities to provide value-added custom manufacturing services to various entities.

27th February: Medicamen Biotech Limited was recognized and awarded as the No. 1 supplier among 160 suppliers worldwide to Ethiopian Pharmaceutical Supply Services (EPSS). This award, presented by the Honorable Health Minister of Ethiopia, recognized MBL’s commitment to providing high-quality, affordable, and reliable medicine to communities across Ethiopia.

Financials:

Medicamen Biotech reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 3 percent, falling from Rs. 46.5 crores in Q3 FY24 to Rs. 45.14 crores in Q3 FY25.

However, during the same period, the company’s net profit increased from Rs. 2.03 crores to Rs. 2.92 crores, representing a rise of around 44 percent YoY.

About the company:

Medicamen Biotech Limited is engaged in the business of manufacturing Finished Dosage Forms (FDF), Oncology Formulations and Research & Development services to serve the needs of the global pharmaceutical industry.

Currently, African clients represent 70 percent of MBL’s sales. However, in the medium term, the company is expanding into the European, U.S., and Middle Eastern markets, which will play a significant role in driving growth.

Written by Shivani Singh

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