Hot Stock: This small-cap scrip hits upper circuit on expansion spree in Gulf; gets Saudi marketing approval for Enoxaparin in PFS!
This market is projected to grow to USD 13.1 billion by 2031, with a 10-year CAGR of 5.4 per cent.
Making rapid global strides through an expansion into the Gulf, Venus Remedies Ltd, a prominent exporter of cost-effective generic drugs operating in over 80 countries, has attained marketing approval from Saudi Arabia. This approval, for its Enoxaparin product in pre-filled syringes, comes from the largest pharmaceutical market in the Gulf Cooperation Council (GCC) region.
Venus Remedies possesses an annual production capacity of over 5 million units of Enoxaparin, a widely utilized anticoagulant preventing blood clots, using its robotic line. Having secured marketing authorizations for six ICU antibiotics and three oncology products in Saudi Arabia, Venus Remedies has already sold more than 12 million drug units within the USD 7.8 billion Saudi Arabian pharmaceutical market (as of 2021). This market is projected to grow to USD 13.1 billion by 2031, with a 10-year CAGR of 5.4 per cent.
The marketing approval for Enoxaparin in Saudi Arabia is anticipated to pave the way for similar authorizations in other GCC and MENA countries. This anticoagulant holds significance in treating cardiovascular diseases, a notable health concern in Saudi Arabia, and is expected to contribute to the burgeoning global Enoxaparin market.
Saransh Chaudhary, President of Global Critical Care at Venus Remedies Ltd, lauded the achievement, highlighting that this approval signifies a substantial milestone for the company. It not only allows further expansion in the GCC and MENA regions but also underscores Venus Remedies' dedication to innovation, patient convenience, and safety. Venus Remedies already stands as a key supplier of essential antibiotics in Saudi Arabia. This approval positions the company favourably to enhance its leadership role in the region. Further approvals for six to seven oncology drugs in Saudi Arabia would bolster Venus Remedies' portfolio of off-patent products in the GCC region.
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On Monday, Venus Remedies Ltd.’s shares surged 5 per cent to an upper circuit at Rs 244.25 per share from the prior close of Rs 232.65. The stock holds a PE of 14.62x, compared to the sectoral PE of 31.8x, with a market capitalization of Rs 325 crore.
The stock is up by 50 per cent in 6 months and generated multibagger returns of 330 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.