Sudarshan Pharma Industries was locked in 5% upper circuit at ₹41.39 following the announcement of its strategic acquisition. The multibagger pharma stock has demonstrated exceptional performance with gains of over 15% in a month and 52% in six months on BSE. According to reports from Business Standard, the stock has surged over 46% year-to-date (YTD), significantly outperforming the broader Sensex index which has declined 10% over the same period. The company's market capitalisation stood at ₹984.16 crore as of 4 September.
The board has approved acquiring 24,23,675.64 equity shares, equivalent to a 9.50% stake of Common Stock of MedTherapy Biotechnology Inc. According to the latest reports from Business Standard, Hemal Mehta, chairman & managing director, and Sachin Mehta, joint managing director and promoters will acquire 3,82,685.63 equity shares each, representing 1.50% of the issued and outstanding share capital. The acquisition will be financed through cash consideration in US dollars, with the purchase price determined based on prevailing valuation norms, and is expected to complete by March 31, 2027. The board meeting was held on September 5, 2026, as reported by Business Standard.
As reported by Business Standard, the proposed acquisition aims to help Sudarshan Pharma enter the US market and establish presence in the region. The investment will provide access to MedTherapy's existing customer base, contracts and distribution network, while supporting expansion into new products and services. MedTherapy Biotechnology is a Boston-based global cancer cell & gene therapy company founded in 2018 by experts from Harvard and former Novartis executives, operating as an end-to-end, integrated CAR-T Cell CDMO with commercial-scale GMP manufacturing facility in New Delhi, India and technology development site at Boston, USA. The combined promoter interest of 3.00% alongside the corporate stake of 9.50% indicates significant strategic alignment between Sudarshan Pharma's leadership and the target entity.
The transaction is subject to applicable approval requirements under the Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Overseas Investment) Rules, Regulations and Directions, 2022. According to the filing, the transaction falls under the Reserve Bank of India's automatic route, subject to prescribed conditions. The deal requires approval from the Reserve Bank of India under the Foreign Exchange Management (Overseas Investment) Rules, 2022, via the automatic route, with the transaction confirmed to not fall under related-party transactions. MedTherapy Biotech was founded by experts in the oncology field with the mission of making cancer treatment more affordable and accessible, enabling nearly every cancer patient to afford treatment.
According to Business Standard, Sudarshan Pharma reported a 45.05% rise in consolidated net profit to ₹5.86 crore on a 20.07% increase in revenue to ₹174.42 crore in Q1 FY27 compared with Q1 FY26. The company manufactures active pharmaceutical ingredients (APIs) and trades in chemicals and solvents, with manufacturing units located in Palghar (Maharashtra), Pune and Hyderabad. Historical stock returns show the stock's resilience across different time periods, with recent performance indicating continued investor confidence in the company's growth strategy and strategic expansion into the US market through the MedTherapy Biotechnology partnership.
