Penny Stock Below Rs 2 Hits Back-to-Back Lower Circuits: Company Announces Strategic Partnership with JiyaYu Lifesciences
The stock is up by 40 per cent from its 52-week low and has given multibagger returns of over 1,100 per cent in 5 years.
Today, shares of Remedium Lifecare Ltd hit a 2 per cent lower circuit to Rs 1.70 per share from its previous closing of Rs 1.73 per share. The stock's 52-week high is Rs 16.57 per share and its 52-week low is Rs 1.21 per share. In the recent trading sessions, the stock has been hitting back-to-back lower circuits.
Remedium Lifecare Limited's Singapore-based subsidiary, Remlife Global PTE LTD., has announced a strategic partnership with JiyaYu Lifesciences to revolutionise the production of active pharmaceutical ingredients (APIs) and advanced intermediates. The collaboration will focus on replacing animal-origin raw materials with sustainable, cost-effective, and regulatory-compliant alternatives developed through JiyaYu's proprietary fermentation and biocatalyst-based green chemistry technologies. Under the agreement, JiyaYu will exclusively license fully developed and scalable technologies to Remlife Global, which will then scale up and commercialise these innovative bioprocesses across its GMP-compliant manufacturing sites in India, Singapore, Malta, Ireland, Belgium, and Italy.
This strategic move aligns with Remlife Global's vision of moving beyond ethically complex and vulnerable animal-based supply chains. The shift towards animal-free production is driven by several key factors, including growing pressure for ethical and ESG alignment, enhanced safety and quality control through the elimination of animal-borne pathogen contamination, improved supply chain resilience against diseases and geopolitical volatility, significant environmental benefits due to reduced emissions and resource consumption, and the increasing adoption of bio-based technologies by leading global pharmaceutical companies. JiyaYu Lifesciences has further strengthened its technological capabilities through a partnership with a UK-based R&D platform specialising in fermentation and biocatalyst alternatives, ensuring a continuous flow of cutting-edge innovations to Remlife Global.
The partnership is projected to have a substantial positive impact on Remlife Global's financial outlook. Each licensed technology platform holds a minimum commercial potential of Rs 50 crore per product, with estimated EBITDA margins ranging from 20 per cent to 25 per cent. Assuming the successful scale-up of two products annually, the company anticipates significant growth in both revenue and EBITDA, projecting Rs 100 crore in revenue and Rs 20–25 crore in EBITDA in FY26, followed by Rs 200 crore in revenue and Rs 40–50 crore in EBITDA in FY27. Remlife Global, as the international innovation arm of Remedium Lifecare Ltd., is committed to driving the transition towards sustainable API contract manufacturing through strategic collaborations and the commercialisation of groundbreaking R&D.
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About the Company
Founded in 1988, Remedium Lifecare Ltd. is a BSE-listed pharmaceutical company engaged in the trading and distribution of raw materials as a supply chain management for the pharmaceutical industry with an emphasis on quality, compliance and global reach. The company continues to expand its presence while playing a pivotal role in India’s pharmaceutical ecosystem.
Remedium Lifecare Ltd has a market cap of Rs 162.91 crore. According to Quarterly Results, the company reported net sales of Rs 38.15 crore and a net profit of Rs 0.76 crore in Q3FY25 while in its half-yearly results, the company reported net sales of Rs 140.93 crore and a net profit of Rs 4.18 crore in 9MFY25. In its annual results, the company reported total income increased by 698 per cent to Rs 4,062.80 crore and net profit increased by 504 per cent to Rs 32.72 crore in FY24 compared to FY23.
According to the shareholding pattern, the company's promoters own only a 1.11 per cent stake in the company and the maximum stake is owned by the public shareholders i.e. 98.89 per cent stake. The company's shares have an ROE of 123 per cent and an ROCE of 100 per cent. The stock is up by 40 per cent from its 52-week low and has given multibagger returns of over 1,100 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.