The shares of Jubilant Pharmova Ltd. rallied as much as 14.45% to Rs 318 on Friday after the company announced that the Canadian government has provided an additional loan facility for the expansion of its contract manufacturing site in Montreal.
Jubilant Pharmova is an integrated global pharmaceuticals and life sciences company with a market capitalization of over Rs 5,100 crore. The company is involved in the manufacturing and supply of Radiopharmaceuticals, contract research development & manufacturing, and biopharmaceutical therapies development.
Jubilant HollisterStier is a subsidiary of Jubilant Pharmova engaged in contract manufacturing. The company notified that its subsidiary got access to a partially repayable loan of CAD 23.8 million to fund the expansion of its CAD 108 million CMO facility.
This comes on top of a previously announced loan facility of CAD 25 million by the Province of Quebec. After the capital expenditure, the fill and finish capacity of the Montreal facility is projected to rise by more than 100%.
Pramod Yadav, CEO of the Noida headquartered pharma company commented, “Jubilant HollisterStier is excited to be chosen as a part of the ecosystem being strengthened by Canada to better position the country for its future needs of vaccines and treatments for potential pandemics. This funding will enable our continued efforts to expand our capabilities in Canada and create more jobs.”
The size of the facility is 40,000 square feet. Post the expansion project, it will be a sterile production site with a broad range of fill and finish capabilities.
Furthermore, the site will have freedom in terms of dosage forms and batch sizes. It shall be equipped with the necessary tools and tech such as isolator barrier equipment, freeze-drying, and more.
The pharma company reported a loss of Rs 16 crore for the three-month quarter ended December 2022 (Q3FY23) on sales of Rs 1,553 crore. During the same period last fiscal, it clocked a net profit of Rs 51 crore on revenue of Rs 1,311 crore.
Written by Vikalp Mishra
