How to buy shares of Amneal Pharmaceuticals stock in India
The stock of Amnal Pharmaceutical is up by a staggering 4% to Rs1,400 crore after the company announced a major expansion plan.
The company’s CEO, N. Amneel Bhatia, has promised to double the capacity of its facility in Gujarat and plans to triple its research and development team by the end of this year.
Bhatia also said the company will invest Rs3.4 billion in infrastructure.
However, analysts have cautioned that there is a big risk that the company’s growth rate will slow, as the company is facing increasing competition from rival drugmakers.
“It is a long-term strategy and the focus will be on building out its facilities in Gujarat, and also expanding to other countries,” said Abhishek Kumar Singh, analyst at Fidelity Investments.
“The company will need to make good progress to grow its revenues to match the growth in revenue it is receiving in India.
But if it fails to do so, there is the risk of the company falling behind,” Singh added.
Aneal has announced plans to expand its manufacturing facilities in India, but the company has yet to announce any investments in the country.
According to the company, it has raised $300 million to fund its expansion plans.
Amneal was founded in 1999 and was acquired by Indian pharmaceutical company Medco in 2013 for Rs1.25 crore.
Its drug pipeline has been valued at $8.3 billion.
Medco acquired the company in January 2018 for Rs10,000 crore.