Shares of Granules India hit an all-time high of Rs 350 in an otherwise weak market, ralling 8 per cent on the BSE on Friday. Thus far in the current week, the stock of the pharmaceutical company has surged 13 per cent as compared to 2 per cent decline in the S&P BSE Sensex. It surpassed its previous high of Rs 336 touched on August 10, 2020.

On August 22, Granules India had announced that its subsidiary company Granules Pharmaceuticals Inc had received approval from the US Food & Drug Administration (US FDA) for Ramelteon Tablets 8 mg, a bioequivalent to the reference listed drug product (RLD), Rozerem Tablets, 8 mg, of Takeda Pharmaceuticals USA.

"Ramelteon Tablets are used for the treatment of insomnia characterised by difficulty with sleep onset. Ramelteon Tablets had US sales of approximately $33 million MAT for the most recent twelve months ending in June 2020 according to IQVIA Health," it said.

For April-June (Q1FY21) quarter, Granules India had reported robust earning with quarterly revenue of Rs 736 crore and an EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 25 per cent, up 503 bps from Q1FY20.

Major growth contribution was due to a significant increase in production to cater to new product launches and increase in market share of existing products across the three verticals, the company said.

According to analysts, its dominance in key APIs (paracetamol, ibuprofen, metformin) would help Granules emerge aa a prime beneficiary as Covid-19 outbreak has led to a surge in demand for such drugs. Granules, they say, is likely to retain strong traction for the next couple of years driven by formulations and the healthy contribution from new capacities.

At 02:22 pm, the stock was trading 6 per cent higher at Rs 344 on the BSE, as against 1 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped 1.7 times as combined 6.8 million shares had changed hands on the NSE and BSE till the time of writing of this report.