Rakesh Jhunjhunwala’s portfolio multibagger pharma stock hit 20 per cent upper circuit & fresh 52-week high; Here’s why!

The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 23 per cent.

On Monday, one of the Top Gainers on BSE, shares of Wockhardt Ltd were locked in 20 per cent upper circuit to Rs 823.65 per share from its previous closing of Rs 686.40 per share. The stock also made a fresh new 52-week high of Rs 823.65 while its 52-week low is Rs 213.25. The shares of the company saw a spurt in volume by more than 4.37 times on BSE.

The sudden rise in the stock price was due to the company making 2 announcements. They are as below:

Announcement 1: In a major development for treating highly resistant infections, the prestigious Clinical and Laboratory Standards Institute (CLSI) awarded Zaynich (Zidebactam/Cefepime- WCK 5222) a very high susceptibility breakpoint of 64 mg/L against ten problematic Gram-negative pathogens. This indicates Zaynich's potential to be highly effective against even extremely drug-resistant strains, representing a first in history for an antibiotic against these three key Gram-negative families (Enterobacterales, Pseudomonas and Acinetobacter). While Zaynich awaits formal approval, these investigational breakpoints were established based on over eight years of research and successful use in compassionate use cases for critically ill patients with infections unresponsive to other antibiotics. With promising clinical results and ongoing Phase 3 trials, Zaynich holds significant promise for becoming a globally registered and marketed antibiotic to combat life-threatening infections.

Announcement 2: A young cancer patient with a chronic and severe bilateral thigh infection caused by an extremely drug-resistant bacteria (metallo-β-lactamase-harbouring Pseudomonas aeruginosa) was successfully treated with an investigational antibiotic called Zaynich (Zidebactam/Cefepime- WCK 5222) after nearly 9 months of hospitalization and multiple rounds of ineffective antibiotics. This compassionate use case, the first of its kind in the US for Zaynich, allowed doctors to resume the patient's chemotherapy after 4 weeks of treatment with the drug. Zaynich improved the condition of the wounds, enabling skin grafting and complete healing, and was well-tolerated by the patient. While currently undergoing global Phase 3 trials for registration, this case highlights Zaynich's potential as a life-saving treatment for critically ill patients with infections caused by extremely resistant pathogens.

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About Wockhardt Ltd

Wockhardt, a global research-based pharmaceutical and biotechnology company, is at the forefront of the fight against antibiotic-resistant "superbugs." Their New Drug Discovery program specifically targets this unmet medical need, with a unique achievement: Wockhardt is the only company in the world to have received QIDP (Qualified Infectious Disease Product) Status from the US FDA for six of their antibacterial discovery programs. Three target Gram-negative bacteria and three target Gram-positive bacteria, all major contributors to the superbug crisis.

This success is backed by a comprehensive Drug Discovery team and clinical organization. A truly international company, Wockhardt employs over 2600 people from 27 nationalities and has a presence in the USA, UK, Ireland, Switzerland, France, Mexico, Russia, and many more. Their global footprint includes manufacturing and research facilities in India, the USA and the UK with an additional manufacturing facility in Ireland. Notably, 77 per cent of Wockhardt's revenue comes from international businesses, solidifying its significant presence in the USA, Europe and India.

The company has a market cap of over Rs 12,000 crore and as of March 2024, Rakesh Jhunjhunwala’s portfolio owns a 1.89 per cent stake in the company (now his portfolio is owned by his Rekha Rakesh Jhunjhunwala since December 2020). The stock gave multibagger returns of 250 per cent in just 1 year whereas BSE Sensex Index is up by 23 per cent. Investors should keep an eye on this Small-Cap pharma stocks.

Disclaimer: The article is for informational purposes only and not investment advice.