Capacity addition from Tevapharm sends Marksans Pharma up 6%

Share price of Marksans Pharma jumped 6 percent on October 12 as the company announced capacity acquisition from Tevapharm India’s Goa unit, to double its manufacturing footprint.

At 11:45 am, the stock was quoting Rs 49.50 on the National Stock Exchange, higher by 6.12 percent. The Nifty was up 0.27 percent at 17,029. The stock shed 5 percent last month and is down 3 percent in 2022 so far.

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In an exchange filing on October 11, the company had said that it has “entered into a business transfer agreement with Tevapharm India to acquire its business relating to the manufacture and supply of bulk pharmaceutical formulations in Plot No. Al, Phase l-A, Verna Industrial Estate, Verna, Goa, as a going concern on a slump sale basis”.

Through the acquisition, the company plans to double the existing Indian capacity from 8 billion units per annum. It plans to manufacture tablets, hard and soft gel capsules, ointments, gummies and creams from the new capacity, according to the exchange filing.

“It is a testament to our commitment to invest in product innovation, expand capacities, and drive market share gains,” Mark Saldanha, Promoter and Managing Director of Marksans Pharma, said.

The company has agreed to retain the site employees with existing terms of employment. The transaction is in cash consideration and is expected to be finalized by April 1, 2023.

In the first quarter of FY23, the company had reported an operating revenue of Rs 433.8 crore, growing 24.3 percent on-year, while its gross profit stood at Rs 218.9 crore, up 17.3 percent, and gross margin at 50.5 percent.