During Friday’s trading session, the shares of one of India’s leading research-based biotechnology companies hit a 5% upper circuit at Rs. 318.4 on BSE, after the U.S. International Development Finance Corporation (DFC) committed $20 million towards the company’s capacity expansion.
With a market capitalisation of Rs. 1,929.4 crores, at 11:24 a.m., the shares of Panacea Biotec Limited were trading in the green at Rs. 315, up by nearly 3.9 percent, as against its previous closing price of Rs. 303.25.
What’s the News:
According to the latest regulatory filings with the stock exchanges, the US International Development Finance Corporation (DFC), the US Government’s development finance institution, announced its commitment of a long-term loan of up to $20 million to Panacea Biotec Limited.
Panacea Biotec is expanding its manufacturing capacity for drug substance antigens used in its hexavalent vaccine EasySix to meet future demand from UN agencies and public health organizations.
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DFC has agreed to provide a long-term loan of up to $20 million to Panacea Biotec to help finance this project.
DFC’s financing will enable Panacea Biotec to expedite the completion of the ongoing expansion and supply the hexavalent vaccine to UN agencies for childhood immunisation globally.
About hexavalent vaccine EasySix:
Panacea Biotec has developed the world’s first whole-cell pertussis (wP) and inactivated polio vaccine (IPV)-based, fully liquid hexavalent vaccine, called EasySix, and launched this vaccine in India in March 2017.
This wP-IPV-based hexavalent vaccine offers an innovative immunisation alternative to the existing pentavalent and standalone IPV vaccines, promising fewer vaccination sessions and higher coverage.
The World Health Organization and Strategic Advisory Group of Experts on Immunization have approved the adoption of this hexavalent vaccine in the global immunization program.
Following this, Gavi and the Pan American Health Organization have also adopted the hexavalent vaccine.
UNICEF projects a demand of 19 million doses of the wP-IPV-based hexavalent vaccine for Gavi countries in 2025, with expectations of over 100 million doses by 2030.
This initiative represents a highly impactful project for the DFC, considering Panacea’s extensive global reach and its potential to save millions of lives.
Financials:
The company experienced a decline in its revenue from operations, showing a year-on-year decrease of around 10 percent from Rs. 129 crores in Q1 FY24 to Rs. 116 crores in Q1 FY25.
Similarly, its net profit decreased during the same period from a profit of Rs. 11 crores to a loss of Rs. 16 crores.
Stock Performance
In the previous six months, the stock has delivered multibagger returns of nearly 140.2 percent, as well as around 139 percent returns in one year. So far in 2024, the shares of Panacea Biotec have given about 84.4 percent of positive returns.
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About the Company:
Panacea Biotec Limited is a leading pharmaceutical and biotechnology company engaged in the business of research, development, manufacture and marketing of vaccines in India and international markets.
Panacea Biotec is one of the key players in polio eradication in India that delivered over 10 billion doses of oral polio vaccines.
Written by Shivani Singh
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