Shares of SMS Pharmaceuticals Ltd skyrocketed 17% on Wednesday, 26 November, after the company announced that its subsidiary secured approval from the US Food and Drug Administration (USFDA) for reformulated Ranitidine tablets in 150mg and 300mg dosages.

Ranitidine pills are used to treat gastroesophageal reflux disease (GERD), peptic ulcers, and other disorders related to high stomach acid.

According to SMS Pharmaceuticals, the approval brings this crucial acid-reducing drug back to the US market after a five-year sabbatical.

The USFDA’s approval follows extensive safety testing and manufacturing improvements targeted at addressing past concerns regarding NDMA impurity production.

The approval is likely to boost patient access to this critical medication for people who rely on it to treat a variety of health issues.

The company is on track to reach 20% revenue growth in FY26, with EBITDA margins of 20%.  This performance is predicted to result in a net asset turnover of around 1.6x, putting the company among the industry leaders. 

The company stated that comprehensive backward integration, extensive R&D capabilities, advanced plant engineering, a diverse product portfolio, and price stabilisation across key APIs will all contribute to the growth trajectory.
 
SMS Pharmaceuticals, established in 1990, is an integrated pharmaceutical firm that specialises in APIs and intermediates. It has two advanced manufacturing facilities in Hyderabad and Vizag, with capacities of 200 and 3,000 KL. 
 
With strong in-house R&D, the company provides quality pharmaceuticals across different therapeutic areas to consumers in over 70 countries.

At 1:12 pm, the shares of SMS Pharmaceuticals were trading 16.03% higher at Rs 317.40 on NSE.

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