Orchid Chemicals & Pharmaceuticals rose 1.11% to Rs 68.55 at 11:40 IST on BSE, with the stock extending Thursday's 1.34% gains triggered by the company entering into a strategic alliance with Allecra Therapeutics.
Meanwhile, the S&P BSE Sensex was up 93.99 points or 0.49% at 19,110.45.
On BSE, 1.23 lakh shares were traded in the counter as against average daily volume of 4.53 lakh shares in the past one quarter.
The stock hit a high of Rs 70.80 and a low of Rs 67.95 so far during the day. The stock had hit a 52-week high of Rs 193.70 on 20 April 2012. The stock had hit a 52-week low of Rs 53 on 4 March 2013.
The stock had underperformed the market over the past one month till 18 April 2013, sliding 8.75% compared with the Sensex's 1.43% fall. The scrip had also underperformed the market in past one quarter, declining 30.92% as against Sensex's 5.1% fall.
The small-cap pharmaceutical company has equity capital of Rs 70.45 crore. Face value per share is Rs 10.
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Shares of Orchid Chemicals & Pharmaceuticals (Orchid) have risen 2.46% in two trading sessions from Rs 66.90 on 17 April 2013, after the company during trading hours on Thursday, 18 April 2013 said it has entered into a strategic alliance with Allecra Therapeutics to develop novel antibiotics to combat multi-drug resistant bacterial infections. The stock had risen 1.34% to settle at Rs 67.80 on Thursday, 18 April 2013. The stock market was closed on Friday, 19 April 2013 on account of Ram Navmi.
As part of its investment into Allecra, Orchid has assigned to Allecra IP (Intellectual Property) related to an antibiotic discovery program which will then be pursued through further trials by Allecra, Orchid said in a statement.
Under the terms of the agreement, together with shareholding, Orchid will also be paid an upfront sum and is eligible to receive further royalties and exit bonuses based on Allecra's progress, Orchid said in a statement.
Orchid said that bacterial resistance to current antibiotics is widespread and growing exponentially leading to increased urgency to combat what has been called the "epidemic of antibiotic-resistance". Allecra will aim to contribute to this cause by developing new treatments which overcome emerging bacterial resistance mechanisms, thereby saving lives of patients whose infections may otherwise be inadequately treated, Orchid said in a statement.
Allecra is a biopharmaceutical company established in 2013 in the European BioValley Life Sciences cluster which is located in the Upper Rhein valley encompassing northwest Switzerland, south-eastern Germany and the Alsace Region of France. Allecra is focused on the development of novel treatments to combat multi drug-resistant bacterial infections. The company is based on a strategic partnership between its Founders, orchid Chemicals & Pharmaceuticals, and its lead investors Forbion Capital Partners and Edmond de Rothschild Investment Partners.
Orchid also announced on Thursday, 18 April 2013, that the board of directors of the company at a meeting held on Wednesday, 17 April 2013, approved the extension of Business Transfer Agreement (BTA) with Hospira till 30 June 2013. Consequently, the board approved the extension of financial year 2012-2013 of the company by a period of three months i.e. up to 30 June 2013.
Orchid Chemicals & Pharmaceuticals reported net loss of Rs 72.36 crore in Q3 December 2012, higher than net loss of Rs 10.12 crore in Q3 December 2011. Net sales declined 32.4% to Rs 313.53 crore in Q3 December 2012 over Q3 December 2011.
Orchid Chemicals & Pharmaceuticals is involved in the development, manufacture and marketing of diverse bulk activities, formulations and nutraceuticals.
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