Venus Remedies jumps after bagging marketing approval from Myanmar for Elores

Venus Remedies rose 4.26% to Rs 238.80 at 13:12 IST on BSE after the company said it received marketing authorisation for its flagship research product, Elores, from Myanmar.

The company made the announcement after market hours on Wednesday, 26 February 2014.

Meanwhile, the BSE Sensex was up 81.93 points, or 0.39%, to 21,068.92.

On BSE, so far 19,000 shares were traded in the counter, compared with an average volume of 14,849 shares in the past one quarter.

The stock hit a high of Rs 245.20 and a low of Rs 232.15 so far during the day. The stock hit a 52-week high of Rs 358.05 on 15 May 2013. The stock hit a 52-week low of Rs 140 on 2 August 2013.

The stock had outperformed the market over the past one month till 26 February 2014, rising 1.94% compared with the Sensex's 0.69% fall. The scrip had also outperformed the market in past one quarter, rising 12.42% as against Sensex's 2.75% rise.

The small-cap pharmaceutical company has an equity capital of Rs 11.44 crore. Face value per share is Rs 10.

Venus Remedies said it is all set to stamp its footprint in southeast Asia with marketing authorisation for its flagship research product 'Elores' from Myanmar. The company said it plans to launch the drug in Myanmar by April 2014.

Hailing the deveropment, Venus Remedies chairman and managing director (CMD) Pawan Chaudhary said, "This marketing authorisation will help us make big strides in Southeast Asia. The size of Myanmar's pharmaceutical market is $400 million and the country imports 85-90% of its pharma products. We are looking to capture a sizeable chunk of the antibiotics market in Myanmar with Elores. A few months ago, we had got marketing approval for Elores from Guatemala. It is rewarding to see our research products gaining international recognition."

Venus Remedies has already received patents for Elores from 46 countries. The registration procedure of this product is in advanced stages in 13 European Union member-nations and 15 other countries, including South Korea, South Africa and Saudi Arabia. The company has signed deals with South Korean pharmaceutical company Goodwill Pharma and South African firm Austell Laboratories for the exclusive marketing of Elores, Venus Remedies said in a statement.

Ever since it was launched in India in January 2013, Elores has been receiving a tremendous response from the medical fraternity across the country. Elores is known for its efficacy against serious multidrug-resistant hospital-acquired infections involving metallo-beta-lactamase and carbapenem-resistant strains of bacteria such as E. coli, K. pneumoniae. P. aerugtnosa and A. baumanni, the company said.

Elores has a unique profile of action, which gives it an edge over all the existing therapies, including carbapenems, considered last-resort drugs. This novel antibiotic adjuvant entity (AAE) has recorded a significant reduction in treatment time and cost by up to 30%. It prevents both development and spread of bacterial resistance from one species to another, which makes it one of the safest drugs available to cater to multidrug-resistant and carbapenem-resistant enterobacteriaceae (CREs). Venus has spent $10 million on its research and development (R&D), Venus Remedies added.

Net profit of Venus Remedies rose 7.29% to Rs 17.23 crore on 16.66% rise in net sales to Rs 130.22 crore in Q3 December 2013 over Q3 December 2012.

Venus Remedies is among the world's 10 leading fixed dosage injectables manufacturers, specialising in high-growth therapeutic segments like anti-infective, oncology, cardiovascular and neurology. The result is a presence in 60 countries and covering more than 75 products.

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