Panacea Biotech soars on pact with Osmotica Pharma

Panacea Biotech has locked upper circuit of 20% at Rs 108 after the company said it has entered into strategic alliance with Osmotica Pharmaceutical for developing high barrier to entry generic and branded pharmaceuticals for US and key strategic markets.

“According to agreement, Panacea Biotech will receive initial research fee from Osmotica Pharmaceutical. Moving forward, the company will receive agreed amounts of milestone payments representative of 50% share of development costs from Osmotica Pharmaceutical upon achievement of development milestones,” Panacea Biotech said in a filing.

The stock of biotechnology company has rallied 45% in past two trading sessions has frozen maximum higher limit of the day for second consecutive day on back of heavy volumes.

A combined 599,884 shares have already changed hands on the counter so far, against an average sub 15,000 shares that were traded daily in past two weeks. There are pending buy orders for 53,569 shares on the BSE and NSE at 1159 hours.