Panacea Biotech corrects after terminating MoU for COVID-19 vaccine

Panacea Biotech declined 1.64% to Rs 185.95 after the company said it has terminated memorandum of understanding with Refana for development, manufacture and supply of COVID-19 vaccine.

Earlier in June, Panacea Biotec had announced its memorandum of understanding with Refana Inc, a Delaware corporation, for global development, manufacture and distribution of a COVID-19 vaccine, through a 50:50 joint venture company.

The company will not pursue development of a COVID-19 vaccine in collaboration with Refana and will not make any investment in the joint venture company proposed under the MoU, which was approved by shareholders of the company on 17 July 2020, it said. The termination is due to delays in project timelines and difficulty in moving ahead with the joint venture.

Shares of Panacea Biotech have declined 7.33% in last one month as compared to a 12.88% rise in Nifty Pharma index.

Panacea Biotec is an innovation-led biotechnology group that focuses on discovery, development, and commercialisation of prescription medicines

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