Venus Remedies rose 4.37% to Rs 238.95 at 10:11 IST on BSE after the company signed a pact with South African pharmaceutical firm to exclusively outlicense its flagship product, Elores, in South Africa.
The announcement was made after market hours on Monday, 9 December 2013.
Meanwhile, the BSE Sensex was down 50.64 points, or 0.24%, to 21,275.78.
On BSE, 30,000 shares were traded in the counter compared with average volume of 16,029 shares in the past one quarter.
The stock hit a high of Rs 244 and a low of Rs 236.05 so far during the day. The stock hit a 52-week high of Rs 358.05 on 15 May 2013. The stock hit a 52-week low of Rs 140 on 2 August 2013.
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The stock had outperformed the market over the past one month till 9 December 2013, rising 7.77% compared with the Sensex's 3.19% rise. The scrip had also outperformed the market in past one quarter, rising 23.06% as against Sensex's 10.67% rise.
The small-cap company has an equity capital of Rs 11.44 crore. Face value per share is Rs 10.
Venus Remedies announced that it has signed a memorandum of understanding (MoU) with South African pharmaceutical firm Austell Laboratories to exclusively outlicense its flagship product, Elores, in South Africa.
A novel antibiotic adjuvant entity that effectively counters serious hospital-acquired infections caused by multidrug-resistant extended-spectrum beta-lactamase (ESBL) and metallo-beta-lactamase (MBL) - producing gram negative bacteria, Elores is likely to be launched in South Africa by mid-2015, Venus Remedies said in a statement.
Venus Remedies said that the overall systemic and antibacterial market of South Africa is worth $275 million and growing at a compound annual growth rate (CAGR) of 10.5%. Elores will cater to the needs of about 40% segment of this market. Venus Remedies said it is projected to generate cumulative revenue of $20 million within five years of the launch of Elores in South Africa.
Globally the systemic antibacterial market, which is growing at a CAGR of 7.2%, is set to reach $44 billion by 2016, Venus Remedies said. The infections caused by multidrug-resistante ESBL/MBL-producing gram negative bacteria which Elores is capable of fighting comprise 25% of this market, thus creating a tremendous opportunity for Venus Remedies, the company said in a statement.
Venus Remedies' net profit declined 0.6% to Rs 15 crore on 12.8% growth in net sales to Rs 124.53 crore in Q2 September 2013 over Q2 September 2012.
Venus Remedies is a pharmaceutical company. It is among the world's 10 leading fixed dosage injectables manufacturers. The company has a presence in 60 countries and covering more than 75 products.
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