This smallcap biotechnology stock hits upper circuit amid market slowdown
Sale agreement sends the stock rising 5%.
Panacea Biotec Ltd has been trending in the biotechnology sector as it has hit an upper circuit today of 5% when the Sensex has fallen by 1.38%. The share has been trending higher today. The scrip opened at Rs 196.70 and made a day’s high of Rs 198.50 where it hit the upper circuit and trading was halted and the stock closed at the same price.
The company has entered into definitive sales agreements with Mankind Pharma ltd for the sale of pharmaceutical formulation brands of its material subsidiary which is Panacea Biotec Pharma Ltd (PBPL). On 28 February 2022, it had announced of Mankind Pharma acquired pharmaceutical formulation brands of PBPL. On 1st March, the Board approved the whole deal for a sum of Rs 1,872 crore.
Talking about its recent quarterly results, in Q3FY22, revenue grew by 9.96% YoY to Rs 155.88 crore from Rs 141.76 crore in Q3FY21. On a sequential basis, the top-line was down by 32.86%. PBIDT (Ex OI) was reported at Rs 11.86 crore, down by 21.72% as compared to the year-ago period and the corresponding margin was reported at 7.61%, contracting by 308 basis points YoY. PAT was reported at Rs -49.2 crore, down by 23% from Rs -40 crore in the same quarter for the previous fiscal year. The PAT margin stood at -31.56% in Q3FY22 contracting from -28.22% in Q3FY21.
Panacea Biotec is one of the largest Vaccine Manufacturing companies in India. It is an innovation-driven Biotechnology company doing Research and Development, Manufacturing, Sales, Distribution and Marketing of Pharmaceuticals, Vaccines and Biosimilars. The stock has a 52-week high of Rs 453.70 and a 52-week low of Rs 163.80.
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