Godavari Biorefineries shares jump over 11% intraday on US expansion plan

Godavari Biorefineries share price rose to the highest level in over two months on BSE. It closed 8 per cent higher at ₹290.5 per share

Godavari Biorefineries share price today: Godavari Biorefineries' share price surged on Wednesday as the company expanded operations in the US with the incorporation of a new subsidiary. The stock price surged 11.57 per cent on BSE to ₹300, the highest level since September 18, before closing 8 per cent higher at ₹290.5 per share.   By comparison, the BSE Sensex index closed 0.14 per cent lower today.

 

On a year to date basis, Godavari Biorefineries shares have advanced 24.60 compared to a 7.74 per cent decline in the BSE Sensex index. The scrip hit a 52-week high of ₹352 on July 24, while it fell to a 52-week low of ₹145.20 apiece on March 28. 

 

On BSE, Godavari Biorefineries had its 0.09 million shares change hands compared to a two-week average of 0.01 million shares. 

 

Why did Godavari Biorefineries' share price rise today?

 

Godavari Biorefineries share price rose on Wednesday as the company incorporated a step-down subsidiary of its Sathgen Therapeutics LLC division based in Princeton, New Jersey, US, the company said in the exchange filing.

 

Godavari Biorefineries believes that the strategic expansion will strengthen its clinical-stage biotechnology presence in the US. With the new step-down subsidiary, the company will primarily focus on global out-licensing of intellectual properties, and build the network to accelerate the drug-development programme.

 

Sathgen Therapeutics has formed a Scientific Advisory Board, which will guide its clinical-development and translational-research strategy, the company said in the exchange filing. The board has Dr.Razelle Kurzrock, an internationally known authority in precision oncology, immunotherapy, and early-phase clinical trials; and Dr. Massimo Cristofanilli, a leading global expert in metastatic breast cancer and cancer biology. Kurzrock and Cristofanilli’s experiences will play a pivotal role as Sathgen advances its portfolio toward the US partnerships and next-phase development, Godavari Biorefineries said in the press release. 

 

Godavari Biorefineries is a flagship company of the Somaiya Group. The company is a leader in the space of integrated biorefineries specialising in bio-based chemicals, ethanol, sugar, and power production. It is also one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India. 

 

The company operates facilities in Sakarwadi, Maharashtra, and Sameerwadi, Karnataka, and research and development facilities in Mumbai and plant locations, the exchange filing said. 

 

Earlier this month, Godavari Biorefineries said it has received approval for its US-based patent application, ‘Compounds For The Inhibition of Unregulated Cell Growth’, from the anti-cancer research segment.