Orchid Pharma Limited, a prominent player in the pharmaceutical sector, has announced a significant move to bolster its financial position and meet regulatory requirements. The company's Board of Directors has given the green light to a substantial fundraising initiative, marking a pivotal moment in its corporate strategy.

Fundraising Approval

The Board of Directors of Orchid Pharma has approved a plan to raise funds up to Rs. 504.00 crores. This capital infusion will be achieved through the issuance of equity shares, either via preferential allotment or private placement. The company has opted for a flexible approach, allowing for the fundraising to be conducted in either a single tranche or multiple tranches, depending on market conditions and investor interest.

Regulatory Compliance

A key driver behind this fundraising effort is Orchid Pharma's need to comply with minimum public shareholding requirements. The company is working within the timelines stipulated under Rule 19A(5) of the Securities Contracts (Regulation) Rules, 1957. This move demonstrates the company's commitment to adhering to regulatory norms and enhancing its public float.

Next Steps

Before proceeding with the share issuance, Orchid Pharma must clear several hurdles:

1. Member Approval: The fundraising plan requires approval from the company's shareholders at a general meeting.
2. Regulatory Approvals: Various statutory and regulatory approvals will need to be obtained before the share issuance can take place.

This fundraising initiative represents a significant step for Orchid Pharma, potentially impacting its capital structure and public shareholding pattern. Investors and market watchers will be keenly observing how this move unfolds and its implications for the company's future growth and compliance strategies.

Orchid Pharma Limited , a leading pharmaceutical company, has announced a significant acquisition and reported its financial results for the first quarter, amidst challenging market conditions in the global antibiotics sector.

Acquisition of Enmetazobactam Global Rights

In a transformative development, Orchid Pharma has acquired the global rights to Enmetazobactam and the trademark Exblifep from Allecra following the latter's insolvency. This acquisition gives Orchid complete control over the regulatory and commercial strategy for this novel antibiotic worldwide. The transaction is subject to certain conditions and is expected to be completed within the next three months.

Manish Dhanuka, Managing Director of Orchid Pharma, stated, "This is a transformative development for Orchid, making us the only Indian pharmaceutical company that can call itself an innovator of a new chemical entity that is internationally approved."

Key points of the acquisition include:

• Double-digit royalties previously receivable by Allecra from Advanz in Europe will now flow directly to Orchid.
• The product is already licensed in Europe, Middle East, and North African markets.
• Discussions are ongoing for several other geographies, including Brazil and Japan.
• The company aims to find a licensing partner for the U.S. market within a year of completing the acquisition.

Q1 Financial Performance

Orchid Pharma reported a significant decline in sales for the first quarter:

Market Challenges and Outlook

The company attributed the performance to an unprecedented global slowdown in the antibiotics market. Key observations include:

• Both prices and volumes are under pressure in the antibiotics sector.
• Overall quantity of oral antibiotics exports from India fell by about 30%.
• Average export prices dropped by about 15% to 20%.

Manish Dhanuka commented, "We have consciously chosen not to participate in the ongoing price war. This has been achieved through disciplined pricing, a more resilient product mix, and continued optimization of input costs."

Strategic Initiatives and Future Outlook

Despite the challenging environment, Orchid Pharma is progressing on several strategic initiatives:

1. The domestic brand Orblicef continues to perform steadily.
2. The Antimicrobial Stewardship (AMS) division is expanding its engagement with hospitals and clinicians.
3. The 7ACA project in Jammu is progressing in line with revised timelines.
4. The Cefiderocol project remains on track for a December 2026 launch.

The company expects the antibiotics industry challenges to persist through the current year, with no revival anticipated in the near future. However, management remains optimistic about long-term prospects, particularly with the acquisition of Enmetazobactam rights and ongoing strategic initiatives.

Orchid Pharma aims to navigate near-term pressures while laying the groundwork for future growth, focusing on expanding the licensing of Exblifep globally, deepening penetration of Orblicef in India, and maintaining margin discipline while selectively investing in high-impact growth areas.