Panjon Soars On Foreign Partner Move

Panjon, a second-line pharma stock today hit the 10 per cent upper limit at Rs 25.50 on the BSE.

More than 1.74 lakh shares were traded on the counter. Dealers at a local brokerage house said, "The sharp rise in activity on the counter following company announcement that it plans to offer a 26 per cent stake to a foreign strategic partner." In the past 13 trading sessions, the stock has appreciated around 136 per cent between May 20 and June 10. Also, the average volume on the counter has also increased from mere 30,000 shares to over two lakhs.

 

Recently, Panjon had also announced that it is in talks with strategic investors including a London-based company to issue convertible preference shares on private placement basis to part finance its growth plans. Prospective investors have given an indicative value to its existing basket of brands at Rs 35 crore.

The company has also chalked out a Rs 25 crore expansion plan in healthcare retailing, new drug delivery system (NDDS), new chemical entity (NCE), a clutch of natural products and the biotech sector. Under healthcare, retailing would focus on the cardiovascular segment where Panjon would offer tests on 2-D echocardiography colour doppler, exercise stress training, 24-hour ambulatory holter and blood pressure monitoring, etc. The centres would be developed under the franchisee model initially in metropolitan cities under a common brand name.

At present, main products and brands under the Panjon umbrella include Panjon painkiller tablets, balm, Kery cough drops, Prokin Himagiri herbal hair oil, Swad digestive drops and Percy premium candies. Plans are also on to unveil skin protection creams, prickly heat powder, shampoo, talcum powder and medicated toothpaste.