In a significant development within the pharmaceutical sector, a leading biotech firm has forged a strategic five-year partnership with Innova Captab Limited for the production and supply of sterile water for injection. This collaboration comes as the company prepares to unveil its third-quarter financial results for fiscal year 2025.
Share Price Movement
The share price of Onyx Biotec Limited hit a 5 percent lower circuit to Rs. 75 per share on Friday, a decrease from its previous close of Rs. 78.95 per share. The market capitalisation now stands at approximately Rs. 135 crore as of January 10, 2025.
What’s Driving the Price?
Onyx Biotec Limited has signed a 5-year agreement with Innova Captab Limited to manufacture and supply sterile water for injection. Innova Captab is a pharmaceutical company in India that handles research, manufacturing, distribution, and exports. Onyx Biotec is focused on providing high-quality products at affordable prices, adhering to global standards.
The company will be announcing its Q3 FY25 Results Today
Financial Highlights
The company demonstrated strong financial growth in March 2024, achieving revenue of Rs. 53.75 crore, a notable 36% increase YoY compared to Rs. 39.49 crore in March 2023. This significant rise in revenue highlights the company’s successful strategies and expanding market presence.
Similarly, its profitability saw remarkable improvement, with profit soaring by 64.67% YoY to Rs. 3.03 crore in March 2024, compared to Rs. 1.84 crore in March 2023. These impressive numbers underscore the company’s ability to effectively scale its operations while enhancing profitability, reflecting robust performance and financial stability.
The average price-to-earnings (P/E) ratio in the pharmaceuticals industry is 32. which is less than Onyx Biotec ’s current P/E ratio of 44.87.
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Market Outlook
The Indian pharmaceutical industry is set to grow significantly, with projections of reaching a market size of US$130 billion by 2030. This growth is driven by cost-efficient manufacturing, affordable treatments, and strong exports. India’s low production costs, skilled labour, and ability to supply affordable medicines and vaccines worldwide have cemented its reputation as the ‘Pharmacy of the World’. With robust demand from the US, Europe, and emerging markets, Indian pharmaceutical companies are expected to see a revenue growth of 9-11% in FY25.
Shareholding Pattern
As of the September 2024 shareholding pattern, Onyx Biotec Limited is primarily held by the promoters at 65.10 percent, foreign institutional investors at 8.72 percent, and the public at 22.89 percent.
About Company
Onyx Biotec Limited, founded on May 13, 2005, in India, transitioned from a private entity to a public limited company in May 2024. Specialising in sterile pharmaceutical products for both domestic and international markets, the company operates two manufacturing units with notable production capabilities: Unit I produces 638,889 units of sterile water for injections daily, while Unit II manufactures 40,000 units of dry powder injections and 26,667 units of dry syrup.
Serving over 100 pharmaceutical companies, including Hetero Healthcare, Mankind Pharma, and Sun Pharmaceutical, Onyx Biotec is pursuing funds to fund expansion, enhance manufacturing facilities, and repay loans, demonstrating its commitment to quality and customer satisfaction as it grows in the global pharmaceutical sector.
Written By Fazal Ul Vahab C H
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