50% Rally YTD: Sudarshan Pharma Hits 5% Upper Circuit, Is US Expansion Plan Behind Upturn?

The shares of Sudarshan Pharma Industries rose nearly 5 per cent to hit the upper circuit at Rs 41.39 per share as compared to the last closing of Rs 39.42 on BSE, after the small-cap pharma company announced strategic expansion into the US market. Last seen, the stock was trading at Rs 41.01, up 4.03 per cent or Rs 1.59. Meanwhile, the 52-week high and low of Sudarshan Pharma shares stood at Rs 42.79 and Rs 18.50, respectively. 

Business Expansion in US Through Acquisition: Key Points 

In an exchange filing, Sudarshan Pharma said that its board of directors have approved the acquisition of a 9.5 per cent stake in MedTherapy Biotechnology Inc, a Delaware-registered company. The proposed acquisition will help the company to enter the US market and establish a presence in the region. MedTherapy Biotech works in cancer treatment. 

• Stake to be Acquired: 9.50% stake in MedTherapy Biotechnology Inc, which translates into2,423,675.64 equity shares of Common Stock (par value $0.0001 per share).

• Promoter Acquisition: Promoters Hemal Mehta and Sachin Mehta will personally acquire 382,685.63 equity shares (1.50% stake).

• Financing Method: Cash consideration denominated in US dollars based on prevailing valuation norms.

• Timeline: Expected to be completed by March 31, 2027.

Share Price History: 50% Rally Year-to-Date (YTD)

According to BSE Analytics--till 2:10 PM, September 7, the Sudarshan Pharma shares rose over 50 per cent till date this year (YTD). In the last six months, the stock escalated over 60 per cent, while in the last three months the pharma stock rose over 20 per cent. In the last 30 days, the stock jumped 20 per cent. 

Meanwhile, in the long term, the small-cap pharma stock has given multifold returns. In the last three years, the company's shares soared over 380 per cent.    

Disclaimer: This story is for informational purposes only. It should not be construed as investment advice. Please consult a certified advisor before investing.