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Bajaj Healthcare soars on applying for COVID drug patent

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Capital Market
Last Updated : Jun 29 2021 | 2:31 PM IST

Bajaj Healthcare jumped 13.15% to Rs 814.90 after the company said that it has moved the Indian Patent Office requesting to grant a compulsory license for manufacturing & supply of COVID-19 drug Baricitinib (API and formulation).

Currently, Eli Lilly and company has received emergency use authorization (EUA) from U.S. Food and Drug Administration (FDA) for the distribution and emergency use of Baricitinib to be used in combination with remdesivir in hospitalized adult and pediatric patients aged more than two years with suspected or laboratory confirmed COVID-19 requiring supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation (ECMO).

Emergency use authorization (EUA) permits the emergency use of baricitinib, in combination with remdesivir, for treatment of suspected or laboratory confirmed COVID-19 in hospitalized adults and paediatric patients above two years of age requiring supplemental oxygen, invasive mechanical ventilation, or ECMO.

Bajaj Healthcare had approached Eli Lilly & Company on two occasions, to sign the voluntary license for manufacturing and supply of Covid-19 Drug Baricitinib. BHL assured them, about manufacturing high-quality product at an affordable price for the Indian patient population.

Eli Lilly & Company declined the applications on both the occasion, citing the reason that it is really challenging for them to sign voluntary licensing agreements with all the Indian companies who have requested for the same.

When all the attempts to get the voluntary license from the Patentee were futile, BHL moved to Indian Patent Office, requesting to grant compulsory licence for manufacture and supply of COVID-19 Drug Baricitinib, so that it can supply the essential medicine in this pandemic situation in India.

Anil Jain, joint managing director, Bajaj Healthcare (BHL), said "We have moved the Indian Patent Office to grant compulsory license for manufacturing & supply of COVID drug Baricitinib (API and formulation). Currently, the drug Baricitinib is licensed to US pharma giant Eli Lilly & Company, by its originator company INCYTE, providing them the rights for marketing it across the globe.

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Considering our manufacturing capabilities & strong in-house R&D team, we can produce Baricitinib at very competitive and affordable prices in India."

Bajaj Healthcare is a leading manufacturer of APIs, intermediates and formulations. It specializes in manufacturing of of amino acids, intermediates, API, formulations & nutraceuticals.

The company's net profit surged 69.43% to Rs 21.28 crore on a 11.54% increase in net sales to Rs 132.18 crore in Q4 FY21 over Q4 FY20.

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First Published: Jun 29 2021 | 1:39 PM IST

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