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Panacea Biotec surges after expanding existing collaboration with Apotex Inc

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Last Updated : Sep 12 2017 | 12:01 AM IST

Panacea Biotec jumped 10.18% to Rs 242 at 11:50 IST on BSE after the company said that it has expanded its existing collaboration with Apotex Inc.

The announcement was made during market hours today, 11 September 2017.

Meanwhile, the S&P BSE Sensex was up 218.32 points, or 0.69% to 31,905.19. The S&P BSE Small-Cap index was up 138.73 points, or 0.85% to 16,463.93.

More than usual volumes were witnessed on the counter. On the BSE, 1.24 lakh shares were traded in the counter so far, compared with average daily volumes of 28,086 shares in the past one quarter. The stock had hit a high of Rs 254 so far during the day, which is also a 52-week high for the stock. The stock had hit a low of Rs 222 so far during the day. The stock had hit a 52-week low of Rs 103 on 21 November 2016.

The stock extended gains after surging 11.27% to Rs 219.65 on Friday, 8 September 2017.

The stock had outperformed the market over the past one month till 8 September 2017, jumping 52.69% compared with 1.02% decline in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 44.7% as against Sensex's 1.52% rise. The scrip had also outperformed the market in past one year, jumping 104.04% as against Sensex's 9.1% rise.

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The small-cap company has equity capital of Rs 6.13 crore. Face value per share is Re 1.

Panacea Biotec has expanded its existing collaboration with Apotex Inc., the largest Canadian-owned pharmaceutical company, for sales & distribution of Prasugrel 5mg and 10mg tablets, which are generic version of Eli Lilly's Effient, in the USA.

The company has signed an exclusive license and supply agreement with Apotex for the purpose. Under the terms of the agreement, Apotex shall be responsible for sales & distribution of the product in the USA and the Company shall be responsible for manufacturing and supply.

The company has already received tentative approval of the US drug regulator for its paragraph-IV to file abbreviated new drug application (ANDA) of Prasugrel Hydrochloride 5mg and 10mg tablets. Under the provisions of the Hatch-Waxman Act, the company will be entitled to 180 days of shared marketing exclusivity for Prasugrel Hydrochloride upon United States Food & Drug Administration (USFDA) approval.

Prasugrel is currently having annual sales of around $600 million in USA and is indicated for reduction of thrombotic cardiovascular events in people with acute coronary syndrome (ACS) who are to be managed with percutaneous coronary intervention.

The company and Apcotex are also working on two drug delivery technology based, high barrier to entry anti-cancer generic products under their existing collaboration.

Separately, the company said on Saturday, 9 September 2017, that its board in a meet on 13 September 2017, will consider an enabling resolution for fund raising option by way of including but not limited to qualified institutional placement, foreign currency convertible bonds, convertible securities or any other method.

The board on that day will also consider demerger of real estate business of the company through scheme of arrangement subject to applicable approvals.

The company will also announce its Q1 results on 13 September 2017. Panacea Biotec reported net loss of Rs 25.49 crore in Q4 March 2017 compared with net profit of Rs 72.15 crore in Q4 March 2016. Net sales fell 17.8% to Rs 167.02 crore in Q4 March 2017 over Q4 March 2016.

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

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First Published: Sep 11 2017 | 12:40 PM IST

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