Gland Pharma Stock Jumps To A Record High On Sputnik V Vaccine Supply Pact
Shares of Gland Pharma Ltd. jumped to a record high after the drugmaker entered into a pact to supply Russia’s Sputnik V Covid-19 vaccine.
As part of the deal, Gland Pharma will supply up to 252 million doses of the vaccine, according to an exchange filing. Production is expected to commence from the third quarter of 2021 for estimated delivery starting from the fourth quarter of 2021, it said.
The Indian drugmaker will leverage its manufacturing capabilities for the production of the vaccine. It will utilise its drug substance and drug product facilities at its sites in Hyderabad.
The agreement will first see Gland Pharma undertake technology transfer of the drug substance to its manufacturing facilities. After this, the company will undertake manufacturing of drug substance and drug product filling into vials under aseptic conditions.
The Russian Direct Investment Fund in December 2020 had said the efficacy of the Sputnik V vaccine is 91.4%. The vaccine supplies for the global market will be produced by RDIF’s international partners in India, Brazil, China, South Korea and other countries, PTI reported citing the developer’s statement. In September 2020, RDIF partnered Dr. Reddy’s Laboratories Ltd. to conduct clinical trials of the Sputnik V vaccine, and distribute it in India. Then in November, RDIF and pharma firm Hetero agreed to produce over 100 million doses per year of the vaccine in the country.
“Gland Pharma’s expertise in manufacturing of sterile injectables at a significant scale will support in establishing a stable supply of Covid-19 vaccines,” the filing said.
Motilal Oswal in a February 2021 note had said Gland Pharma stands out in the pharma universe with a solid track record of developing and commercialising complex products in the injectables space. “Given that injectables have stringent regulatory guidelines compared with other dosages, Gland Pharma is clearly at an advantage on account of its successful compliance,” the brokerage said, as it initiated coverage on the stock.
Shares of Gland Pharma gained as much as 5% to a record high of Rs 2,670 apiece after the announcement. The stock is up for the second session in a row. Of the nine analysts tracking the drugmaker, seven have a ‘buy’ rating and one each suggest a ‘hold’ and a ‘sell’, according to Bloomberg data. The stock also crossed its 12-month consensus price target of Rs 2,644 in Tuesday’s trade.