Panacea Biotec hits 52-week high; stock rallies 64% in 4 days

The stock has more-than-doubled in the past one month from the level of Rs 101, as compared to 6.6 per cent gain in Sensex in the same period

Shares of Panacea Biotec advanced for the fourth straight day and were locked in 20 per cent upper circuit at Rs 211 on the BSE on Tuesday on the back of heavy volumes.

The biotechnology company's stock hit a 52-week high and surpassed its previous high of Rs 210, touched on April 24, 2019. It has rallied 64 per cent in the past four trading days, against 1.3 per cent rise in the S&P BSE Sensex. In the past one month, Panacea Biotec's stock price has more-than-doubled from the level of Rs 101, as compared to 6.6 per cent gain in the Sensex.

The trading volumes on the counter jumped nearly five-fold with a combined 920,000 equity shares changing hands on the BSE and NSE till 11:04 am. There were pending buy orders for around 51,000 shares on both the exchanges.

On the sudden spurt in stock price, the company clarified that it has made all the necessary disclosures from time to time and has not withheld any material information/ announcement "that in our opinion would have a bearing on the price behaviour in the scrip,” Panacea Biotec said on April 10, 2020.

Panacea Biotec became one of the leading players in Vaccine therapeutic category in India. The company’s product portfolio includes innovative products in therapeutic areas of oncology, organ transplantation, nephrology, diabetes, osteoporosis, cardiovascular diseases and pediatric vaccines.

For the first nine months (April-December) of the financial year 2019-20 (FY20), Panacea Biotec had posted Earnings before interest, taxes, depreciation, and amortization (Ebitda) of Rs 75.6 crore against loss of Rs 11.3 crore during 9MFY2019. The company’s vaccine business revenues grew 51 per cent to Rs 101 crore during period, while overall revenues rose 24 per cent to Rs 402 crore over the previous year period.

The company's manufacturing facility located at Baddi completed 5 consecutive successful current Good Manufacturing Practices (cGMP) and preapproval inspections by the USFDA.

In its 2018-19 annual report, the company said it continues to focus on building a robust pipeline of several products for filing in several other emerging markets which it will be filing in the next 1-2 years and aims to improve the accessibility and affordability of medicines as the Company's contribution to Government of India's “MAKE IN INDIA” mission.