This small-cap pharmaceutical company is gaining momentum on 13 July

The shares of Bajaj Healthcare Ltd have rallied on foraying into the highly regulated - Opiate Processing Business for the Government of India.

Bajaj Healthcare Ltd is a bulk drug manufacturer serving various Pharmaceuticals, Nutraceuticals, and Food industries globally with a spirit of scrupulousness.

It has metamorphosed into a Specialty Company and focused on the development, manufacturing, and supply of Amino Acids, Nutritional Supplements, and Active Pharmaceutical Ingredients (API) for the Pharmaceutical, Nutraceuticals, and Food industries.

The company has four units for APIs/intermediates and one unit for the formulation, which are designed to meet the requirements of both advanced as well as emerging market opportunities.

BHL is the first-ever private player in India to be awarded a tender for Opiate Processing, which to date was a highly regulated & government-owned business. This new line of business will open up a new stream of revenue which shows immense growth potential, as BHL is currently the sole player for government-allocated Opiate processing on a long-term basis.

 The company announced that it received two letters of Award on 12th July 2022, for the manufacture of Alkaloids/APIs from the Government of India, Department of Revenue, Office of Chief Controller, Govt. Opium & Alkaloid Factories as follows: - 

1. To manufacture Alkaloids & APIs from the processing of 500 MTof unlanced poppy capsules along with Straw on an annual basis.

2. To manufacture Alkaloids & APIs from the processing of 100 MTof Opium Gum on an annual basis.

It is planning to execute both these tenders at its API manufacturing unit located in Savli, Gujarat, India. The APIs will be manufactured under highly regulated conditions and strictly adhere to the protocols set by the Government of India.

The BSE group 'B' stock touched a 52-week high of Rs 499.00 on 13 July 2021 and a 52-week low of Rs 256.80 on 20 June 2022.

Bajaj Healthcare is currently trading at Rs. 354.50, up by 3.97% on the BSE.