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Shares of Orchid Pharma jumped 10% intraday, marking their biggest single-day gain since August 2024.
The rally came after the company signed an exclusive licensing and supply agreement with Russia's leading drugmaker, Pharmasyntez, for its antibiotic used to treat multi-drug resistant bacterial infections.
So, what does Orchid Pharma actually do?
The company manufactures antibiotics, both the active pharmaceutical ingredients (APIs) that go into medicines and the finished drugs sold to patients.
But its biggest achievement is Enmetazobactam, India's first homegrown novel antibiotic, developed to fight dangerous bacteria that have become resistant to existing treatments.
Let’s deep dive a bit.
Orchid had originally licensed the drug to German company Allecra Therapeutics. But after Allecra went bankrupt, Orchid bought back all of its assets in Germany and France, regaining 100% ownership of the drug's global rights.
That means Orchid now owns a medicine that's already approved in the US and Europe, enjoys patent protection until 2034, and earns royalty income directly from international sales.
Now, the company is taking the next step.
Through its partnership with Pharmasyntez, Orchid will introduce its antibiotic, Exblifep, to patients in Russia. The company estimates the opportunity could be worth around $178 million over the next decade.
The numbers: after posting losses in the previous two quarters, Orchid surprised the street with a strong comeback in Q4 FY26. Revenue climbed to a record ₹237.6 crore, while net profit rose to ₹23.8 crore. Profit before tax surged 917%, and operating margins improved sharply from 0.76% to 11.3%.
The bigger picture: for years, Orchid was known as a struggling pharma company. Now, with global rights to its flagship antibiotic back in its hands, improving financials and a growing international footprint, investors are beginning to see a very different story unfold.
