Ajanta Pharma gets USFDA approval for Topiramate Extended-Release Capsules; declines after climbing over 4%

Shares of Ajanta Pharma Ltd rose over 4 per cent in morning deals to touch the day's high of Rs 1,800 apiece, but they soon pared gains.

The stock climbed on the back of the pharmaceutical company receiving final approval from the United States Food and Drug Administration (USFDA) to market Topiramate Extended-Release Capsules, 25 mg, 50 mg, 100 mg, and 200mg.

"Ajanta Pharma Limited, a specialty pharmaceutical formulation company, has received final approval from the United States Food and Drug Administration (USFDA) to market Topiramate Extended-Release Capsules, 25 mg, 50 mg, 100 mg, and 200 mg," the filing read. 

As per the company, Ajanta has received 50 final ANDA approvals, out of which 41 are commercialised. Ajanta also holds 2 tentative approvals, and 22 ANDAs are awaiting US FDA approval.

At around 10:40 am on Thursday, shares of Ajanta Pharma traded 0.13 per cent lower on BSE at Rs 1,726.3 apiece. The stock has snapped the three-day winning streak, and the market capitalisation of the stock at the time of filing this report stood at Rs 21,736.82 crore.

What do analysts suggest about Ajanta Pharma shares? 

Zee Business Senior Research Analyst, Arman Nahar, has recommended buying shares of Ajanta Pharma for a target price of Rs 1,780 apiece with a stop loss of Rs 1,710 apiece. 

How has Ajanta Pharma performed in the June Quarter?

The company reported a profit after tax (PAT) of Rs 208 crore against Rs 175 crore a year ago, up 19 per cent, as per the regulatory filing. The revenue from operations stood at Rs. 1,021 crore against Rs 951 crore, up 7 per cent year-on-year (YoY). 

The company logged its quarterly sales at Rs. 319 crore against Rs 279 crore, up 14 per cent, YoY. 

Ajanta Pharma share price: Past performance 

Ajanta Pharma stock has gained over 42 per cent in 2023 so far, which is a sharp rise against the Nifty 50's rise of over six per cent in the same duration.

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