The company plans to sell a new-technology oral drug in collaboration with Rising Pharma
Mumbai: Shares of New Delhi-based vaccines and biopharmaceuticals maker Panacea Biotec Ltd surged as much as 12% in morning trading on Friday on BSE after the company announced a strategic alliance with US drug marketing company Rising Pharmaceuticals Inc. to sell a new-technology oral drug.
The medicine, a controlled release oral product, which was developed through Panacea’s novel drug delivery research initiative, is currently under review by the US Food and Drug Administration (FDA) for marketing approval in the US.
At 12pm, the stock was trading at ₹ 174 on BSE, up 8.8% from its previous close, while India’s benchmark Sensex index rose 1.14% to 27,436.81 points.
The collaboration with Rising Pharma is important for Panacea as it will offer a strong marketing platform for the Indian drug maker for the new product. It will also encourage the company’s new drug delivery programme and oral drug delivery technology for controlled release products. Under the terms of the agreement, Panacea will receive an upfront research fee and a milestone payment linked to the approval of the product in the US.
This is the second strategic alliance that Panacea has signed in December. Panacea had last week entered into a partnership with Canada-based large drug maker Apotex Inc for research, development, licence and supply of two drug delivery-based generic products for the markets of US, Canada, Australia and New Zealand. This alliance also offers an upfront and milestone research fee payments from Apotex.
In both the alliances, Panacea will also share the profit from the sales of the new technology products.
The marketing collaboration with Rising is important and quite positive in terms of Panacea’s revenue growth and for its new technology research programmes as Rising’s broader marketing strength makes perfect synergy, said Rajesh Jain, joint managing director, Panacea Biotec.