Venus Remedies jumped 3.76% to Rs 323.05 at 9:21 IST on BSE, with the stock extending recent steep rally triggered by the company's wholly owned subsidiary entering into a distribution-cum-outlicensing agreement with Mylan for a generic medicine.
Meanwhile, the S&P BSE Sensex was down 94.21 points or 0.35% at 27,171.11.
On BSE, so far 22,000 shares were traded in the counter as against average daily volume of 2.02 lakh shares in the past two weeks.
The stock hit a high of Rs 325.10 and a low of Rs 313.25 so far during the day. The stock had hit a 52-week high of Rs 350 on 28 April 2014. The stock had hit a 52-week low of Rs 180 on 30 September 2013.
Shares of Venus Remedies have rallied 17.17% in three trading sessions from a recent low of Rs 275.70 on 5 September 2014, after the company during market hours on Monday, 8 September 2014, said that its wholly owned subsidiary has entered into a distribution-cum-outlicensing agreement with Mylan for marketing its generic broad-spectrum antibiotic, meropenem, in three European Countries. This deal with Mylan, the world's third largest generic drug manufacturer, will enable Venus Remedies to market meropenem in Denmark, Sweden and Finland for a period of five years, Venus Remedies said in a statement.
Under this non-exclusive marketing agreement, Venus will manufacture the drug at its Baddi facility, which recently got a renewed European Union Good Manufacturing Practices (GMP) certification, while the batch release and logistics will be handled by its Germany facility Venus Pharma GmbH. This joint venture will further help Venus Pharma GmbH and its collaborators in maintaining their market position to figure among the top five players with around 30% share in meropenem markets in countries like Germany, France and UK.
Venus already has a non-exclusive marketing tie-up with Mylan for the same product in France, where the drug has been successfully launched and is contributing to the company's top and bottom lines, Venus Remedies said in a statement.
As per IMS Health, the market size for meropenem in Denmark, Sweden and Finland is approximately euro 12.54 million, Venus Remedies said in a statement.
Venus Remedies' net profit fell 33.1% to Rs 10.25 crore on 4.6% decline in net sales to Rs 120.81 crore in Q1 June 2014 over Q1 June 2013.
Venus Remedies is a fully integrated pharmaceutical company. It manufactures products in critical care segments such as anti cancer, anti infective, neurology, skin & wound care, and pain management.
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