Neptune Wellness Solutions Inc.’s shares (NEPT) popped more than 30% on Thursday following plans to boost its weekly production of hand sanitizer to over 1 million units to meet strong demand fueled by the coronavirus outbreak.
Neptune, a Canadian-based producer of health products, announced that its subsidiary Biodroga, has accelerated the production of hand sanitizers ahead of time in response to a supply shortage and strong demand from North American retail and government customers as the COVID-19 pandemic continues to take its toll.
The company plans to begin shipping the hand sanitizer next week, including fulfilling a purchase order from a large North American retailer.
“I could not be more proud of how our entire team has mobilized to leverage our collective expertise in procurement, manufacturing, product innovation, supply chain management and regulatory affairs to bring significant and continuous supply of hand sanitizer gel to market ahead of schedule during this critical stage in the battle against COVID-19,” said Michael Cammarata, Chief Executive Officer of Neptune Wellness Solutions. “We are rapidly responding to the needs of North Americans and playing a key role in meeting customer demand for safe and effective hand sanitizer to help prevent the spread of germs and protect consumer health.”
Neptune’s shares soared 31% to $2.48 in early afternoon U.S. trading, after surging as much as 35%.
The two Wall Street analysts covering the stock in the past three months are divided between a Buy and a Hold rating resulting in a Moderate Buy consensus rating. The $3.81 average price target implies a whopping 56% upside potential in the coming 12 months. (See Neptune stock analysis on TipRanks).