Orchid Pharma hits 20% upper circuit on receiving approval for new antibiotic drug

On Tuesday, shares of Orchid Pharma got locked in the 20% to trade at a fresh 52-week high of Rs 859.40, from its previous closing of Rs 716.20 on the BSE.

Receiving EMA approval

Orchid Pharma has secured approval from the European Medicines Agency, the European drug regulator, for its innovative antibiotic Exblifeb. This antibiotic, featuring Emmetazobactum, is designed to address complex Urinary Tract Infections, Pneumonia, and infections caused by Extended Spectrum Beta-lactamase (ESBL) Producing Pathogens.

Exblifeb aims to target the market dealing with antimicrobial resistance (AMR), a significant global health concern that resulted in the direct loss of 1.27 million lives in 2019. The drug is anticipated to outperform the commonly used antibiotic Piptaz based on superior efficacy demonstrated in clinical trials. If successful, it would mark a milestone as the first Indian-developed drug to reach such an advanced stage in clinical development.

Company profile

Established in 1992, Orchid Pharma is an integrated pharmaceutical company with a presence in bulk drug manufacturing and formulations. At present, the company has three manufacturing facilities in Chennai. The API unit at Alathur is USFDA certified, while the two formulation units in Alathur cater to exports to non-regulated markets and the domestic market.

Stock price movement

Today, the stock opened at Rs 742.30 and has touched a high and low of Rs 859.40 and Rs 742.30, respectively. The BSE group ‘A’ stock of face value of Rs 10 has a 52-week high and low of Rs 859.40 and Rs 330, respectively. Last one week high and low of the scrip stood at Rs 859.40 and Rs 705, respectively. The current market cap of the company is Rs 4,358.80 crore.

The promoters holding in the company stood at 69.84%, while Institutions and Non-Institutions held 18.65% and 11.52% respectively.

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