Indoco Remedies share price falls nearly 7% despite tender win in Germany

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Indoco Remedies share price shed nearly 7 percent intraday on December 8 despite the company winning tenders worth Rs 140 crore in Germany, including the AOK for Allopurinol tablets.

The revenue expected from this business is Rs 70 crore per annum and supplies to Germany will begin from January 2021 and continue till the end of 2022.

“This is Indoco's first own-label product in Europe. Germany is totally tender business and Indoco has won almost 80 - 85 percent tenders for Allopurinol. This is a tender order for supplies spread over two years and if we are competitive, we may get repeat orders when the tenders are floated after two years," said Aditi Kare Panandikar, Managing Director-Indoco Remedies.

API consumption will be approximately 100 metric tons per year for this supply.

Indoco manufactures Allopurinol API at its new manufacturing site at Maharashtra's Patalganga. The new API site has a capacity to manufacture 25 tons of Allopurinol per month or 300 tons annually.

"We believe, because of backward integration, we will remain competitive and completely in control of supplies,” Panandikar said.

At 1144 hours, Indoco Remedies was quoting at Rs 297.15, down Rs 9.45, or 3.08 percent on the BSE.

The share touched its 52-week high of Rs 311 on December 7, 2020 and a 52-week low of Rs 145.25 on December 13, 2019. It is trading 4.45 percent below its 52-week high and 104.58 percent above its 52-week low.