Lincoln Pharmaceuticals Ltd acquires a plant in Mehsana, Gujarat, plans to launch Cephalosporin products soon

Lincoln Pharmaceuticals Limited, one of India's leading healthcare companies is planning to launch Cephalosporin products soon. Company has acquired a facility in Mehsana, Gujarat. Investment in Cephalosporin plant for Rs. 30 crore including Croretcapadtv. expansion and modernisation of the facility. Acquisition and further capex will be funded from internal accruals. Company expects commercial operations from March 2022. The plant is expected to contribute sales of around Rs. 150 crore in the next 3 years. The plant will cater to all the Cephalosporin products i.e. Tablet, Capsule, Dry syrup and Injectable.

The acquired facility in Mehsana, Gujarat has been designed as per the PIC's and European Region. Company is in the process of applying for WHO GMP Certifications for the facility and expects to receive the same by December 2021. Company is planning to manufacture 20 plus Cephalosporin products and is planning to start product registration soon for the domestic and exports market.

Cephalosporin is a bactericidal, broad-spectrum, and P-lactam antibiotic originally derived from fungus Acremonium, which is used to treat bacterial infections such as pneumonia, skin infections, ear infection, strep throat, staph infections, tonsillitis, bronchitis and others.

Commenting on the development, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "The entire expansion for Cephalosporin products will be funded from internal accruals. The Company has earmarked total investment of around Rs. 30 crore for this expansion. Company expects commercial production of the Cephalosporin products by March 2022. In the next 3 years, the facility is expected to contribute sales of around Rs. 150 crore from domestic markets as well as exports."

Company plans to manufacture 20 plus Cephalosporin products including Cefalexin Oral Suspension BP, Clavulanate Tablets, Cefixime Capsules, Cefuroxime Axetil Tablets among others. Company also looks to export in African, Latin America and Southeast Asia markets and expand to other markets after necessary approvals.

Shares of Lincoln Pharmaceuticals ltd. was last trading in BSE at Rs. 382.6 as compared to the previous close of Rs. 384.55. The total number of shares traded during the day was 21932 in over 1383 trades.

The stock hit an intraday high of Rs. 389.1 and intraday low of 372.75. The net turnover during the day was Rs. 8343926.

Source : Equity Bulls

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