Panacea Biotec gains on financial aid from the govt

Panacea Biotec is trading up 19% at Rs 221 after the company announced that it has been awarded financial assistance of Rs 10 crore from the Government of India for development of pandemic influenza vaccine, in the form of a long-term loan on concessional rate of interest of 2% p.a.

The company recently signed an agreement with Department of Biotechnology (DBT) in this regard and has received the first installment of Rs 3 crore.

“This grant of financial assistance by Government of India through DBT is in addition to the grant of Advance Market Commitment (AMC) of Rs 10 crore given to the company by Ministry of Health & Family Welfare (MoHFW), Govt. of India to encourage development, manufacture and supply of the said vaccine of paramount national importance” the company said in a filing to the stock exchange.

The stock opened at Rs 188 on the BSE and has touched a high of Rs 222 thus far, with 70,000 equity shares changing hands on the counter.