Chemical stock jumps 14% after securing US patent for new anti-cancer compounds

Synopsis: Godavari Biorefineries received a US patent for anti-cancer compounds targeting stem cells in breast/prostate cancers, granting exclusive rights to develop and produce them, boosting oncology research.

This Chemical stock, engaged in integrated biorefinery operations producing sugar, ethanol, bio-based chemicals, and power from sugarcane across facilities in Karnataka and Maharashtra, jumped 17.14 percent after securing a US patent for new anti-cancer compounds.

With a market capitalization of Rs. 1,267.12 crores, the share of Godavari Biorefineries Limited has reached an intraday high of Rs. 280.85 per equity share, rising nearly 17.14 percent from its previous day’s close price of Rs. 239.75. Since then, the stock has retreated and is currently trading at Rs. 247.60 per equity share. 

What is the News?

Godavari Biorefineries announced that its U.S. patent for “Compounds for the Inhibition of Unregulated Cell Growth” has been officially granted. The patent covers newly developed chemical compounds, the method to create them, and their ability to stop abnormal cell growth by targeting cancer stem cells. These compounds have shown strong promise for treating cancers such as breast and prostate cancer.

With this approval, the company now has exclusive rights to use, produce, and develop these compounds in the United States. This strengthens its research efforts in the anti-cancer segment and supports future innovation in advanced cancer treatments.

Company Overview:

Godavari Biorefineries Limited began as Godavari Sugar Mills in 1939 and transformed into a biorefinery in 2009 via demerger from its parent. Part of the Somaiya Group with over 80 years in sugar and 60 years in the bio-chemicals Industry.

The company operates a fully integrated biorefinery model, crushing sugarcane to produce sugar, ethanol, power, and speciality chemicals. It engages in efficient value chains from distillation and fermentation to advanced bio-based manufacturing, focusing on sustainability and renewable resources.

The company’s retail brand Jivana sells sugar, salt, and turmeric directly to consumers across India. The company’s facilities are in Sameerwadi, Karnataka, and Sakarwadi, Maharashtra, serving India with global exports. 

Recent quarter results:

Coming into financial highlights, Godavari Biorefineries Limited’s revenue has increased from Rs. 321 crore in Q2 FY25 to Rs. 431 crore in Q2 FY26, which has grown by 34.27 percent. The net loss of the company has reduced from Rs. 75 crore in Q2 FY25 to Rs. 42 crore in Q2 FY26.

Godavari Biorefineries Limited’s revenue has grown at a CAGR of 5.09 percent over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 5.79 percent and -3.79 percent, respectively. Godavari Biorefineries Limited has an earnings per share (EPS) of Rs. 3.92, and its debt-to-equity ratio is 0.68x.

Written By – Nikhil Naik

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