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Panacea Biotec jumps after tie up with Canada-based drug maker

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Last Updated : Dec 12 2014 | 11:16 PM IST

Panacea Biotec rose 5.12% to Rs 162.15 at 13:19 IST on BSE after the company said it entered into a strategic alliance with Canada-based pharmaceutical company, Apotex Inc.

The announcement was made during trading hours today, 12 December 2014.

Meanwhile, the BSE Sensex was down 34.86 points, or 0.13%, to 27,567.15.

On BSE, so far 36,000 shares were traded in the counter, compared with an average volume of 11,238 shares in the past one quarter.

The stock hit a high of Rs 174.10 and a low of Rs 152 so far during the day. The stock hit a 52-week high of Rs 218.95 on 22 September 2014. The stock hit a 52-week low of Rs 88.60 on 30 January 2014.

The stock had underperformed the market over the past one month till 11 December 2014, falling 3.68% compared with 1.10% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 9.85% as against Sensex's 2.25% rise.

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The small-cap company has an equity capital of Rs 6.12 crore. Face value per share is Re 1.

Panacea Biotec said it entered into a strategic alliance with Apotex lnc. the largest Canadian owned pharmaceutical company for research, development, license and supply of two drug delivery based high barrier to entry generic products for US, Canada, Australia and New Zealand.

The strategic alliance was initially established for a drug delivery based drug for which Panacea Biotec had received research fees and the product development is progressing on priority. Panacea Biotec and Apotex have now further expanded the scope of the collaboration by including a second drug delivery based product to the collaboration. Both the products have been developed using Panacea Biotec's proprietary platform nanoparticle, liposomal and microparticle drug delivery systems. The current sales of the innovator products are to the tune of about $1 billion.

In addition to an upfront and milestone research fee payments from Apotex; Panacea Biotec shall receive a share of the development cost and profit post commercialization of the products shall be shared at a pre-agreed ratio between both companies. Both companies intend to expand the scope of the alliance by adding new drug delivery based complex generic products to the collaboration.

Panacea Biotec shall undertake product development and shall manufacture and supply the products to Apotex, while Apotex shall be responsible for regulatory affairs, Hatch Waxman litigation and commercialization activities in the territories.

Panacea Biotec has many filed abbreviated new drug applications (ANDAs) in the pipeline and with this collaboration the company strives to become a major global player in technology based specialty generics applying its formulation and drug delivery expertise.

Apotex lnc. is the largest Canadian-owned pharmaceutical company, employing over 10,000 people in research, development, manufacturing and distribution facilities world-wide. Apotex produces more than 300 generic molecules in approximately 4,000 different dosages and formats which, in Canada, are used to fill over 85 million prescriptions a year.

Panacea Biotec reported net loss of Rs 6.82 crore in Q2 September 2014, lower than net loss of Rs 56.27 crore in Q2 September 2013. Net sales rose 54.51% to Rs 155.64 crore in Q2 September 2014 over Q2 September 2013.

Panacea Biotec is one of India's leading research-based pharma-biotech companies with established research, manufacturing and marketing capabilities.

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First Published: Dec 12 2014 | 1:16 PM IST

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