Panacea Biotec shares gain 6% on alliance with Canada-based company

MUMBAI: Shares of Panacea Biotec gained nearly 6 per cent today as it entered into a partnership with Canada-based Apotex Inc for research, development, licence and supply of two drug delivery based generic products to US, Canada, Australia and New Zealand markets.

The drug firm's scrip rose by 4.47 per cent to settle at Rs 161.15 on the BSE. During the trade, it rallied 12.86 per cent to Rs 174.10.

At the NSE, it climbed 5.78 per cent to end the session at Rs 162.

In addition to upfront and milestone research fee payments from Apotex, the company shall receive a share of development cost and profit. Post commercialisation, the profit from the products shall be shared at a pre-agreed ratio between the two companies, Panacea Biotec said in a filing to the BSE.

The current sales of the innovator products are to the tune of $1 billion, it added.

Commenting on the development, Panacea Biotec Joint MD Rajesh Jain said: "This strategic alliance with Apotex is one of the cardinal milestones in our global generics strategy."

As per the agreement, Panacea will undertake product development, manufacture and supply of the products while Apotex will be responsible for regulatory affairs and commercialisation activities, the company said.