Shares of Neuland Laboratories rallied over 9% on Friday, September 27 after the United States Food and Drug Administration’s (USFDA) approval of Bristol Myers Squibb’s (BMS) new schizophrenia drug, Cobenfy (also known as KarXT). According to market experts, Neuland Laboratories is likely to be one of the active pharmaceutical ingredient (API) suppliers for the drug.

However, it remains to be seen whether the Hyderabad-based firm will be an exclusive supplier for Cobenfy.

The drug was acquired through BMS’s $14 billion takeover of Karuna Therapeutics.

Analysts forecast the drug could generate $2.5 billion in sales in the US by 2030, with BMS planning to make it available to patients as early as October.

Cobenfy is expected to be priced at $1,850 per month, amounting to $22,500 annually.

Shares of Neuland Laboratories surged as much as 9.05 % to an intra-day high of ₹13,600 on the BSE. The stock opened at ₹13,300.05 in the morning trade, reflecting an upside of 6.65% from the previous close of ₹12,470.8.

Neuland Laboratories specialises in providing complex and speciality APIs to pharmaceutical innovators developing novel therapies.

Analysts believe that the stock’s sharp upward movement reflects investor optimism about Neuland’s potential role in the production of this promising new therapy.

Neuland Laboratories’ quarterly net profit increased by 58% to ₹98.3 crore in the June 2024 quarter from ₹ 62.2 crore a year ago.

The company reported a total income of ₹444.4 crore for the quarter ended June 2024, a 22% growth compared to ₹365 crore in the same period last year.

EBITDA or operating profit for the quarter stood at ₹128.6 crore, marking a 29.5% improvement over the ₹99.3 crore recorded in June 2023.

Shares of Neuland Laboratories were trading 4.89% higher at ₹13,080.10 on the BSE around 10:30 am.

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