Sadhana Nitro Chem Ended 7% Higher On Introducing pAP Bulk Drug Plant

Following Dr. Mansukh Mandaviya, Union Minister for Chemicals & Fertilisers and Health & Family Welfare's virtual inauguration of Sadhana Nitro Chem Ltd.'s Para Amino Phenol (pAP) bulk drug plant on March 2, 2024, along with 26 other greenfield bulk drug park projects and 13 greenfield medical device manufacturing plants, the company's shares closed 7.37% higher on Wednesday at Rs 76.45 per share on the NSE.

Dr Mandaviya said, "Medicines are an essential requirement for any society. During the COVID-19 pandemic, the dangers of supply chain getting affected, the risks of being highly dependent on imports of critical resources like bulk drugs and medical devices and its potential effects on India's pharma and MedTech sector led to a lot of brainstorming within the Union Government. The Production Linked Incentive (PLI) scheme is a result of these wide-ranging discussions"

Mr. Abhishek Javeri, MD, Sadhana Nitro Chem Ltd., added, "The virtual inauguration by Dr. Mansukh Mandaviya, Union Minister for Chemicals & Fertilizers and Health & Family Welfare, underscores the government's commitment to fostering indigenous manufacturing capabilities in critical pharmaceutical components. Global supply chains, particularly in the pharmaceutical industry, have been exposed to vulnerabilities due to the COVID-19 pandemic.With the inauguration of our pAP plant under the Production Linked Incentive (PLI) scheme, we are not only contributing to reducing India's dependence on imports but also positioning the country as a key exporter of pharmaceutical products and formulations."

"As only the second plant in the world to manufacture pAP from Nitrobenzene, we are proud to pioneer environmentally-friendly manufacturing processes. With our PLI scheme award and current production ramp-up, we are poised to contribute to the domestic production of pAP, a critical ingredient in the manufacturing of essential drugs like Paracetamol. As a result of our efforts, we are confident that not only will India's pharmaceutical ecosystem be strengthened, but that millions of people will have better access to quality healthcare worldwide," Abhishek Javeri added.

"As we continue to expand our manufacturing capabilities and contribute to the growth of the Indian pharmaceutical industry, we express our gratitude to the government, regulatory authorities, and our stakeholders for their unwavering support. Together, we are shaping a brighter future for India's pharmaceutical and healthcare sectors," he further stated.

India ranks third in terms of volume in the healthcare and pharmaceutical sector, with an expected US$50 billion in industry size in 2022-2023, with 50% of output going towards exports. By 2030, it is projected to grow to a value of around US$130 billion. Often referred to as "the pharmacy of the world," the Indian pharmaceutical sector makes significant contributions to advancing universal healthcare access and worldwide public health. With 20% of the world's total generic pharmaceutical supply, India is the world's top volume supplier of generic drugs. It boasts more than 2000 WHO GMP-certified factories nationwide and the most amount of USFDA-authorised plants outside of the US.