Unichem Labs shares jump 4% after announcing consolidation of US generics
Source: Business Standard
Unichem Laboratories share price surged up to 4.1 5 per cent at Rs 671.55 per share on the BSE in Monday’s intraday trade. The stock price of the company jumped after it revealed plans to consolidate its US generics formulations.
“The Board of Directors of the company on Monday, 30th September 2024 will consider, inter-alia, integration and consolidation of the generics formulations business in the US market of M/s. Bayshore Pharmaceuticals LLC (wholly owned subsidiary of Company’s holding company, Ipca Laboratories Limited) into Unichem Pharmaceuticals (USA) Inc. (company’s wholly owned subsidiary) so as to consolidate all the Ipca Group’s USA generics formulations business under one entity,” the company said in an exchange filing on Monday.
Meanwhile, shares of Ipca Laboratories, the majority shareholder in Unichem Laboratories soared 1.14 per cent higher on the BSE at Rs 1450.05 per share intraday.
Ipca Laboratories had acquired a majority stake in Unichem Laboratories, making it a subsidiary. In August 2023, Ipca purchased 33.38 per cent of Unichem’s equity shares, which triggered an open offer. By September 2023, Ipca acquired an additional 19.29 per cent, raising its total shareholding to 52.67 per cent. The acquisition received approval from the Competition Commission of India (CCI) on July 27, 2023.
Unichem Laboratories is a domestic pharmaceutical company which manufactures active pharmaceutical ingredients (APIs). The company operates through four divisions namely Unichem Pharma Division Unichem Specialities Division Unisearch Division and Neu-Foreva Division. The company is headquartered in Mumbai with five manufacturing facilities
Tha market capitalisation of Unichem Laboratories is Rs 4,642 crore, according to Bombay Stock Exchange (BSE).
Its shares are trading at a price to earnings multiple of -82.54 times with an earning per share of Rs -7.81. The 52-week high of the company share is Rs 693.25 per share while its 52-week low is Rs 398.70 apiece.
At 11:11 AM, Unichem Laboratories shares were trading 2.27 at Rs 659.40. In comparison, the BSE Sensex was trading 0.23 per cent higher at 84,741 levels.
First Published: Sep 23 2024 | 11:19 AM IST
