Bajaj Healthcare shares hit 3-month high on foraying into opiate processing business
Premium- Bajaj Healthcare shares extended gains for the sixth straight session, rising to its highest since April
Shares of pharmaceutical company Bajaj Healthcare Ltd surged more than 3% to ₹357 apiece on the BSE in Thursday's early session after the said on Wednesday it was entering the highly-regulated opiate processing business after winning two tenders from the government, sending its shares to a near three-month peak. The stock extended gains for the sixth straight session, rising to its highest since April and has rallied around 24% over the last five sessions.
This is for the first time in the history of the nation, that the government has deregulated Opiate Processing to a private player, said the company on being awarded the very first tender in this segment.
The orders, to supply opium-derived alkaloids and active pharmaceutical ingredients (API) to the government, give a private player access to the state-controlled opiates market for the first time, Bajaj Healthcare said in an exchange filing.
“Bajaj Healthcare Limited (BHL) a leading manufacturer of APIs, Intermediates and Formulations, has been awarded two tenders for manufacture of Concentrated Poppy Straw (CPS) and Alkaloids/Active Pharmaceutical Ingredients (APIs) from unlanced poppy capsules along with straw through CPS-Reg and Opium Gum from the Government of India, Department of Revenue, Office of Chief Controller, Govt. Opium & Alkaloid Factories, GOI," it said.
"The Indian opiates market holds good potential, and the receipt of this order opens the doors to a new business vertical with better margin," said Anil Jain, joint managing director of Bajaj Healthcare.
The company plans to execute the orders at its API (Active Pharmaceutical Ingredient) manufacturing unit in the western state of Gujarat and sees overall margin accretion due to better capacity utilization of the plant. Bajaj Healthcare, established in 1993, specialises in making intermediates, APIs and formulations. BHL has a presence globally in countries like Europe, USA, Australia, Africa, Middle East and South America.
MINT PREMIUM See All
Bajaj Healthcare shares are down more than 14% in 2022 (YTD) so far as compared to about 9% fall in benchmark Sensex.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less