India's Bajaj Healthcare forays into opiate processing, shares surge (updated)

Bajaj Healthcare

13/07/2022 05:53

(Adds shares, details of tenders)
    BENGALURU, July 13 (Reuters) - Indian pharmaceutical company
Bajaj Healthcare Ltd  BAJH.NS  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 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 a regulatory filing https://www.bseindia.com/xml-data/corpfiling/AttachLive/c5e82938-eb1f-4541-b6ad-d35db2ab12d8.pdf.
    Shares of the company rose as much as 5.3% to their highest
since April 20, extending gains to a sixth straight session. The
stock has risen around 24% over the last five sessions.
    "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
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. 
    

    

 (Reporting by Chris Thomas in Bengaluru; Editing by Rashmi
Aich)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695;))