Pharma stock jumps 3% after company plans to acquire 3 anti diabetes brands
Pharma stock jumps 3% after company plans to acquire 3 anti diabetes brands
A leading pharmaceutical company is making strategic moves in the diabetes treatment market. The organisation has set its sights on expanding its therapeutic portfolio through a significant acquisition of three anti-diabetes brands from a prominent international pharmaceutical manufacturer.
This strategic purchase represents a calculated effort to strengthen the company’s position in the metabolic health segment. The brands in question are expected to complement the existing product lineup and potentially open new revenue streams for the organisation.
Share Price Movement
The share price of Torrent Pharma Limited hit the upper circuit of 3.05 percent to Rs. 3,455 per share on Thursday, an increase from its previous close of Rs. 3,352.65 per share. The market capitalisation now stands at approximately Rs. 1,13,267 crore as of December 05, 2024.
What happened
Torrent Pharmaceuticals will acquire three anti-diabetes brands (Cospiaq, Cospiaq Met, and Xilingio) from Boehringer Ingelheim International. The acquisition is expected to be completed in March 2025. This is to expand its existing diabetes care portfolio and leverage the growing SGLT-2 inhibitor market valued at INR 3,235 crore.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Torrent Pharma’s consolidated revenue from operations has increased by 8.6 percent YOY from Rs. 2,660 crore in Q2 FY24 to Rs. 2,889 crore in Q2 FY25 and increased by 1.04 percent QoQ from Rs. 2,859 crore in Q4 FY24.
The company’s consolidated net profit has increased by 17.35 percent, from Rs. 386 crore in Q2 FY24 to Rs. 453 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 0.8 percent QoQ from Rs. 457 crore.
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Market Outlook
The industry outlook appears promising despite recent challenges. The global pharmaceutical industry is projected to grow at a steady pace, driven by factors such as rising healthcare expenditure, an ageing population, and the increasing prevalence of chronic diseases. However, supply chain disruptions, geopolitical tensions, and regulatory changes pose potential risks.
The Indian pharmaceutical sector is also expected to see sustained growth, fuelled by expanding domestic demand and increasing access to essential medicines nationwide. Overall, the industry seems poised for continued progress, though navigating various headwinds will be crucial for maintaining this positive trajectory.
Shareholding Pattern
As of the December 2024 shareholding pattern, Torrent Pharma Limited is primarily held by the promoters at 71.25 percent, foreign institutional investors hold 14.46 percent, and the public with 7.21 percent.
About Company
Torrent Pharmaceuticals Ltd., an Indian multinational company headquartered in Ahmedabad, Gujarat, has been a trailblazer in the pharmaceutical industry since 1959. Originally founded as Trinity Laboratories by U.N. Mehta, the company adopted its current name in 1971. Operating across 40+ countries, it boasts over 2,000 product registrations, underscoring its global influence.
Specialising in critical therapeutic areas like cardiovascular, central nervous system, and oncology, Torrent has set benchmarks in niche markets. The company also excels in paediatrics, gynaecology, and respiratory care. With a significant presence in Brazil and Germany, Torrent has become a leader in specialised markets. Its manufacturing facilities in India and a US FDA-approved research centre in Gujarat reflect its robust infrastructure.
Torrent’s strategic acquisitions, such as Unichem Laboratories and Elder Pharmaceuticals, have solidified its position as the market leader. With annual revenues surpassing ₹10,700 crores, the company continues to expand globally while prioritising quality and innovation.
Written By Fazal Ul Vahab C H
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