Hester Biosciences surged 9.66% to Rs 2980 after Gujarat Covid Vaccine Consortium (GCVC) signed a pact with Bharat Biotech International towards contract manufacturing for the drug substance for Covaxin.
The GCVC comprises Gujarat Biotechnology Research Centre (GBRC) (a Government of Gujarat undertaking), Hester Biosciences and Omnibrx Biotechnologies.
The Memorandum of Understanding (MoU) mandates that Bharat Biotech shall provide the technology for the production of the drug substance for Covaxin, a COVID-19 vaccine. Covaxin is a registered trade mark of Bharat Biotech.
GBRC will act as an advisor and mentor and will facilitate the technology transfer from Bharat Biotech. Hester Biosciences shall provide the complete infrastructure at its Gujarat plant for the manufacturing of the drug substance. Lastly, Omnibrx Biotechnologies shall act as a technology support partner.
This entire process is facilitated by the Department of Biotechnology, Government of India. The drug substance would be available from August 2021 (if everything goes as per the schedule) which will be supplied back to Bharat Biotech for producing Covaxin.
Hester Biosciences said it has estimated an outlay of Rs 40 crore for this project. This proposed manufacturing activity at Hester Biosciences would not disturb any manufacturing or marketing forecasts of its on-going business for the FY 2021-2022.
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Hester Biosciences' consolidated net profit rose 7.7% to Rs 12.87 crore on a 12.2% increase in net sales to Rs 56.89 crore in Q3 FY21 over Q3 FY20.
Hester Biosciences is one of India's leading animal healthcare companies and are the second largest poultry vaccine manufacturer in the country. The company has a strategic presence in over 30 countries, while focusing on key market needs in India, Nepal and Tanzania.
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