Multibagger pharma stock Sudarshan Pharma will remain in focus in Monday’s trading session after the board approved over 9.5% stake acquisition in Med Therapy Biotechnology Inc.
Sudarshan Pharma share price closed 1% higher on Friday, ending the session at ₹39.42 apiece. The market capitalisation of stood at ₹984.16 crore, as of 4 September.
Sudarshan Pharma’s stake acquisition details
In an exchange filing dated 5 September, said that the board has approved acquiring 24,23,675.64 equity shares, which is equivalent to a 9.50% stake, of Common Stock, par value $0.0001 per share of MedTherapy Biotechnology Inc.
According to the filing, Hemal Mehta, chairman & managing director, and Sachin Mehta, joint managing director and promoters of the company, will acquire 3,82,685.63 equity shares of MedTherapy Biotechnology Inc., each having a face value of $0.0001. The acquisition represents 1.50% of the issued and outstanding share capital of the company.
The acquisition will be financed through a cash consideration denominated in US dollars, with the purchase price determined based on the prevailing valuation norms of MedTherapy Biotechnology. The company expects to complete the acquisition by March 31, 2027.
The proposed acquisition of a 9.50% stake in MedTherapy Biotech is aimed at helping the company enter the US market and establish a presence in the region. It will also provide access to MedTherapy’s existing customer base, contracts and distribution network, while supporting expansion into new products and services, the company said in the filing.
The investment is subject to the applicable approval requirements under the Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Overseas Investment) Rules, Regulations and Directions, 2022, as amended from time to time. The transaction falls under the Reserve Bank of India’s automatic route, subject to the prescribed conditions.
MedTherapy Biotech was founded by experts in the oncology field with the mission of making cancer treatment more affordable and accessible, with the aim of enabling nearly every cancer patient to afford the treatment.
MedTherapy Biotechnology is a Boston-based global cancer cell and gene therapy company founded in 2018 by experts from Harvard and former Novartis executives. The company operates as an end-to-end, integrated CAR-T cell CDMO, with a commercial-scale GMP manufacturing facility in New Delhi, India, and a technology development centre in Boston, USA.
Sudarshan Pharma share price trend
share price has given positive returns despite weak market sentiment. The multibagger pharma stock has gained over 15% in a month and 52% in six months on BSE.
Furthermore, the stock has surged over 46% year-to-date (YTD), significantly outperforming the broader Sensex index, which has declined 10% over the same period.
Sudarshan Pharma share price has given multibagger returns of 369.29% in three years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.