Ajanta Pharma’s shares ticked higher after the company announced a partnership with Biocon to bring the popular weight‑loss medicine semaglutide to several Asian and African markets.
Why the Stock Moved Up
The stock closed at ₹2,715, up about 0.9%, after reaching a high of ₹2,784 during the session. This marks a gain for the second day in a row.
Details of the Semaglutide Partnership
Under the deal, Ajanta will source semaglutide from Biocon and market it in 23 African countries plus three nations in the Middle East and Central Asia. The arrangement is an in‑licensing model, meaning Ajanta does not take on manufacturing risk but can still capture sales upside.
Growth Projections
- Analysts estimate annual sales of $25‑30 million from semaglutide in Asia and Africa starting in the second half of FY28.
- Projected EBITDA margins for the drug are 50‑55%.
- Overall revenue for Ajanta is expected to grow at a compound annual growth rate (CAGR) of about 11% from FY26‑28.
- Net profit is forecast to rise at roughly 16% CAGR over the same period.
Broker’s Target and Recommendation
Motilal Oswal kept a “Buy” rating on Ajanta Pharma and maintained its target price of ₹3,145, suggesting roughly a 17% upside from the current level.
What It Means for Investors
The company’s strong cash position gives it room to acquire complementary products, and its recent brand acquisitions have already expanded its portfolio. The asset‑light, marketing‑focused approach in emerging markets could boost margins without heavy capital outlay.
Key Takeaways
- Ajanta’s partnership with Biocon could add a high‑margin drug to its lineup.
- Analysts see $25‑30 million in sales and a 17% price upside.
- The stock’s recent upward trend reflects growing optimism about this new revenue stream.
Remember, this is just an overview, not a prediction. Do your own research and consider speaking with a financial advisor before making any investment decisions.