Vivimed Labs gets healthier after subsidiary gets additional investment

Vivimed Labs gained 1.59% to Rs 105.60 at 9:35 IST on BSE after the company announced that OrbiMed Asia made additional investment in its overseas subsidiary, Vivimed Labs (Mascarene).

The announcement was made during market hours today, 1 January 2018.

Meanwhile, the S&P BSE Sensex was down 14.64 points, or 0.04% at 34,042.19. The S&P BSE Small-Cap index was up 88.81 points, or 0.46% at 19,319.53, outperforming the Sensex.

On the BSE, 13,073 shares were traded on the counter so far as against the average daily volume of 1.83 lakh shares in the past one quarter. The stock had hit a high of Rs 106 and a low of Rs 104.80 so far during the day. The stock had hit a record high of Rs 153.30 on 21 September 2017 and hit a 52-week low of Rs 88.40 on 29 December 2016.

The small-cap company has equity capital of Rs 16.50 crore. Face value per share is Rs 2.

Vivimed Labs said that it has signed definitive agreements and received funds to facilitate additional investment of $7.5 million by OrbiMed Asia into the company's subsidiary, Vivimed Labs (Mascarene). Vivimed Labs (Mascarene) is the holding entity of the company's active pharmaceutical ingredient (API) business.

This investment is a follow on of $42.5 million invested in the company in September 2017 by OrbiMed Asia.

The proceeds of this additional investment will be utilised to drive business growth and increase the company's profitability by organic and inorganic growth opportunities.

OrbiMed is a leading healthcare investment firm.

Vivimed Labs' consolidated net profit fell 17.8% to Rs 22.07 crore on 5.3% decline in net sales to Rs 282.50 crore in Q2 September 2017 over Q2 September 2016.

Vivimed Labs is a niche specialty chemicals and pharmaceuticals company.

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