Shilpa Medicare Shares Gain After EU GMP Nod for Dharwad Plant

Shilpa Medicare shares gained momentum as the company reversed its losing streak following a key regulatory clearance. The positive development marks a turning point for the stock after a week of decline.

Market Performance

On May 5, Shilpa Medicare shares gained 1.79% in early trade, ending a five-day slump.

• Current Price: ₹642
• Gain: ₹11.30
• Time: 09:24 AM (BSE)

This uptick comes after a drop of over 7% in the week ended May 2, despite consistent growth in the three weeks prior.

Main News

A significant regulatory milestone triggered the rise in Shilpa Medicare shares. The company’s Dharwad facility, operated by its biologics arm, Shilpa Biologics, has received EU Good Manufacturing Practice (GMP) clearance.

• Location: Dharwad, Karnataka
• Inspecting Authority: Austrian competent authority
• Inspection Date: February 18–20, 2025
• Result: Inspection closed with Zero Observations

The inspection evaluated key operational areas, including:

• Sterile drug product filling and packaging lines
• Quality systems
• Quality control laboratories

The facility was found to be fully compliant with EU GMP standards.

Company Details

Shilpa Biologics, a subsidiary of Shilpa Medicare, recently entered into a binding term sheet with mAbTree Biologics AG, a Switzerland-based biotech firm.

• Partnership Focus: Development, manufacturing, marketing, and sale of a new biological entity (NBE).

This collaboration further strengthens the company’s biologics portfolio and global positioning in regulated markets.

Stock Overview

Here’s how Shilpa's Medicare stock has performed recently:

• 52-Week High: ₹959.95 (September 18, 2024)
• 52-Week Low: ₹419.10 (June 4, 2024)
• Current Position:
  • 33.12% below 52-week high
  • 53.19% above 52-week low
• Market Capitalisation: ₹6,278.18 crore

Summary

The recent gain in Shilpa Medicare shares reflects investor confidence after its Dharwad biologics site received EU GMP certification. This regulatory green light and strategic global partnerships position the company well for future growth in the biologics segment. Despite recent short-term volatility, the stock shows resilience with solid long-term prospects.