Shares of Sigachi Industries surged by 10 percent on November 29 following the company's announcement regarding its submission of a Certificate of Suitability (CEP) filing for Propafenone Hydrochloride. Trimax Biosciences Pvt Ltd, a subsidiary of Sigachi, received communication from the European Directorate for the Quality of Medicines & Health Care (EDQM) on this filing. This certification will allow Sigachi to export the Active Pharmaceutical Ingredient (API) product to Europe and other countries that accept the CEP.
At 11:40 AM, shares of Sigachi traded 8 percent higher at Rs 55. Year-to-date, the stock has gained 7 percent, underperforming the Nifty 50, which has gained 10 percent during the same period. After posting negative monthly returns from August to October, the stock has gained 12 percent so far in November.
Propafenone Hydrochloride, a key treatment for cardiac arrhythmias, is a high-demand API with a current global market size of $1.2 billion. This market is expected to grow to $2.1 billion by 2032, with a CAGR of 7 percent, due to the increasing prevalence of cardiovascular diseases, growing adoption of generic medications, and rising healthcare expenditure globally.
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Commenting on the development, Amit Raj Sinha, Managing Director and CEO of Sigachi said, "The submission of our first CEP filing is a testament to Trimax Biosciences' commitment to quality, compliance, and innovation in the API domain. This achievement not only strengthens our position in the pharmaceutical supply chain but also aligns with our vision of providing reliable and sustainable pharmaceutical solutions on a global scale."
Trimax Biosciences, based in Raichur, Karnataka, specialises in the development and manufacturing of APIs.
Sigachi produces cellulose-based excipients, including microcrystalline cellulose (MCC), along with other products for the pharmaceutical, food, nutraceutical, cosmetic, and chemical sectors. In Q2FY25, Sigachi reported a 44 percent year-on-year increase in consolidated net profit, reaching Rs 21.8 crore, and a 66 percent quarter-on-quarter rise. Revenue from operations grew 26 percent year-on-year and 31 percent sequentially to Rs 125 crore.
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