Venus Remedies rose 13.55% to Rs 292.50 at 12:54 IST on BSE after the company said it has entered into a collaborative agreement with Israel-based generic drug maker Teva for selling an anti-cancer drug in the Canadian market.
The announcement was made after market hours on Tuesday, 26 August 2014.
Meanwhile, the BSE Sensex was up 107.77 points, or 0.41%, to 26,550.58.
On BSE, so far 3.66 lakh shares were traded in the counter, compared with an average volume of 33,014 shares in the past one quarter.
The stock hit a high of Rs 295 and a low of Rs 266 so far during the day. The stock hit a 52-week high of Rs 350 on 28 April 2014. The stock hit a 52-week low of Rs 163 on 28 August 2013.
The stock had underperformed the market over the past one month till 26 August 2014, falling 4.65% compared with 1.21% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 12.05% as against Sensex's 6.98% rise.
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The small-cap company has an equity capital of Rs 11.44 crore. Face value per share is Rs 10.
Venus Remedies announced that it recently entered in to a collaborative agreement with Teva for a block buster anti-cancer drug. This high potential drug is under patent protection till 2016 and is widely used for the treatment of malignant pleural mesothelioma and nonsquamous non-small cell lung cancer having a market of more than $4 billion and estimated to increase to $5.4 billion by 2020 in the regulated markets of United States, France, Germany, Italy, Spain, the United Kingdom and Japan, Venus Remedies said in a statement.
Under this collaboration, Venus Remedies will be initially developing the drug in their research unit, Venus Medicine Research Center, for assisting Teva in registrations. Thereafter, Venus will also use its manufacturing capability to support its valuable partner in enhancing the business in Canada market. The GMP granted to Venus for EU is also valid for Canada, based on which, Venus infrastructure and regulatory competence will be used for commercialization of this blockbuster drug in Canadian market, the company said.
The current global anti cancer market size is $130 billion with the share of $2.8 billion of this drug. Its market size in Canada alone is approximately $75-100 million and this association will be able to capture respectable market share of the product in 1st year of launch.
Commenting on this achievement, Dr Manu Chaudhary, Joint Managing Director, Venus Remedies cum Director-Venus Medicine Research Center said, "We are already in association with Teva for two Cephalosporins product business from EU market. Conclusion of the deal for Canada market has further strengthened our relationships as well as widened the scope of our products. With this association, Venus will be penetrating Canadian market for the first time which will add another territory to VRL's quest for quality services. Teva will use Venus infrastructure and regulatory competence for commercialization of this anticancer product in Canadian market."
Venus Remedies' net profit fell 33.05% to Rs 10.25 crore on 4.61% decline in net sales to Rs 120.81 crore in Q1 June 2014 over Q1 June 2013.
Venus Remedies is a fully integrated pharmaceutical company. It manufactures products in critical care segments such as anti cancer, anti infective, neurology, skin & wound care, and pain management.
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