Shares of Laurus Labs traded 2 per cent higher at Rs 615.40 on the BSE in intra-day trade on Tuesday, rising 70 per cent thus far in the current financial year 2021-22 (FY22) on a robust growth outlook. In comparison, the S&P BSE Sensex is up 7 per cent since April. The stock of the pharmaceutical company had hit a record high of Rs 641.95 on June 8, 2021.
Laurus Labs is a leading developer and manufacturer of generic APIs (active pharmaceutical ingredient) with a focus on products where it has cost leadership and holds an advantage by way of innovation in process chemistry and manufacturing efficiencies. Apart from manufacturing APIs, it develops and manufactures oral solid formulations, provides CRAMS (contract research & manufacturing services) services to several global pharmaceutical companies, and also produces specialty ingredients for nutraceuticals, dietary supplements, and cosmeceuticals companies.
“All the four businesses have a robust growth outlook driven by improving demand and supported by capacity expansion plans lined up. The synthesis business is expected to stage strong growth over the next 2 years with sustained new client additions. Laurus Bio is also expected to grow substantially over the next four-five years and would make us a fully integrated player in the pharmaceutical and biotechnology space,” Laurus Labs said in its financial year 2020-21 (FY21) annual report.
The management said the company is seeing improved footing in its formulation segment, apart from the tendering business, and are expanding capacities to meet the demand. The brownfield expansion project for the formulation segment will be operational in a phased manner from August 2021 and will be fully operational by the end of 2021-22. The company is also planning to add a block for High Potency API (HPAPI) to support growth in the synthesis segment which is driven by new client additions and increasing commercialisation of products.
Going ahead, Laurus has charted a definite growth trajectory that involves strengthening its presence in the non-ARV space, fortifying its position in the formulations and synthesis segments and tapping the new area of biologics (through Laurus Bio). The company is looking to build new capacities/facilities that would propel its growth in the coming years.