Venus Remedies surges 18% in three days on marketing tie-up with Mylan

The company has entered into a distribution-cum-outlicensing agreement with Mylan for marketing its generic broad-spectrum antibiotic 'Meropenem' in three European countries.

Venus Remedies has surged 5% to Rs 327, extending its 13% rally in past two days on BSE, after the company said it ties up with Mylan for marketing meropenem in three European countries.

“The company has entered into a distribution-cum-outlicensing agreement with Mylan the world's third-largest generic drug manufacturer, for marketing its generic broad-spectrum antibiotic ‘Meropenem’ in three European countries -- Denmark, Sweden and Finland — for five years,” Venus Remedies said in a statement.

Meropenem’s global annual generic sales stood at $1,879 million in 2012 and are estimated to grow at a CAGR of 7.5% to reach around $2,100 million in 2014-15. Meropenem is a broad-spectrum antibiotic used in ICU infections as a last resort for the treatment of life-threatening infections. According to IMS Health, its market size in Denmark, Sweden and Finland is approximately Euro 12.54 million.

The stock opened at Rs 316 and hit a high of Rs 330 on NSE.  A combined 277,409 shares changed hands on the counter so far on NSE and BSE.