Shares of Aurobindo Pharma Ltd surged as much as 1.72% to hit a 52-week high of ₹1,024.90 apiece on the BSE after the pharmaceutical major received United States Food and Drug Administration (USFDA) approval for the manufacturing facility of its subsidiary APL Healthcare Ltd.

The scrip opened higher at ₹1,014.95, up 0.73%, as against the previous closing price of ₹1,007.50. At 12:09 pm, the company's share price was trading 0.41% lower at ₹1,003.40, paring early gains. This was in line with the broader BSE Sensex which was trading 161.07 points or 0.24% lower at 65,633.66. The company’s market capitalisation stood at ₹58,842.88 crore with 73,502 shares exchanging hands on the BSE as against the two-week average of 1.52 lakh shares. In the past one month, three months and one year, the company has given 15.94%, 17.05% and 114.24% in return, respectively.

"The United States Food and Drug Administration (US FDA) conducted a Pre-Approval Inspection (PAI) at Unit-I & III, Formulation manufacturing facility, of APL Healthcare Ltd., a wholly-owned subsidiary of the Company, situated at TSIIC Green Industrial Park, Pollepally Village, Jedcharla Mandal, Mahabubnagar District, Telangana, from November 13 to 17, 2023. The inspection closed with zero observations and a classification of “No Action Indicated” (NAI)," the company says in a statement.

The development comes days after the pharmaceutical major China manufacturing facility from the European Union’s Good Manufacturing Practices (GMP). The company anticipates the plant to become fully operational and generate revenue either from Q4 of FY24 or Q1 of FY25, according to Santhanam Subramanian, CFO, Aurobindo Pharma. The company plans to dispatch five products from the China plant to the European market.

In the July to September quarter, the company’s consolidated net profit surged as much as 85% year-on-year (YoY) t0 ₹752.2 crore, as against ₹409.4 crore in the same period last year. The company’s revenue from operations during the quarter under review stood at ₹7,219.4 crore, surging by 25.8% as against ₹5,739.3 crore in the same period last year on the back of growth across key segments. The company’s EBITDA (earnings before interest, tax, depreciation and amortization) witnessed an increase of 73.7% to ₹1,373.5 crore as against ₹791 crore in the same period last year.

“This is yet another quarter with highest-ever sales, driven by robust performance across the markets, and continued margin expansion, aided by operational leverage and efficiencies. With our strong product pipeline, focus on compliance, and key projects in advanced stages, we will continue our growth journey, while generating value for our stakeholders,” says K Nithyananda Reddy, Vice Chairman and Managing Director, Aurobindo Pharma.

APL Healthcare Ltd

Aurobindo Pharma swings to 52-week high; here's why