Snowman Logistics Shares Surge On Sputnik Vaccine Delivery Tie-Up With Dr. Reddy’s
Shares of Snowman Logistics rose as much as 15% — the most since Feb. 17.
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Shares of Snowman Logistics Ltd. jumped the most in more than three months after the cold-storage service provider partnered Dr. Reddy’s Laboratories Ltd. for Sputnik Covid-19 vaccine delivery.
Snowman Logistics will provide temperature-controlled end-to-end logistics solutions for the delivery of the two-dose Sputnik vaccine across India, according to its exchange filing.
“Snowman Logistics will manage the delivery through five of its high-capacity temperature-controlled warehouses in Mumbai, Delhi-NCR, Kolkata, Chennai, and Bengaluru,” it said. “The temperature, throughout, will be maintained between -20 degrees Celsius and -25 degrees Celsius.”
The cold-storage service provider—which counts Abbott, Bharat Biotech, GlaxoSmithKline, and Pfizer among its clients—has the capability to readily store 65 crore doses at any given time, the filing said. This, according to the company, can be increased to 105 crore doses with a short notice for pan-India distribution.
The Covid-19 inoculation drive in India, witnessing a far deadlier second wave of the pandemic, sputtered and slowed in May due to a shortfall of doses at a time the country opened up vaccinations for all its adult population. While it’s projected to take India about two years to cover 75% of its population with a two-dose shot at the current pace of vaccination, Narendra Modi government said it would vaccinate every eligible Indian by the end of 2021.
In April, Russia’s Sputnik V became the third vaccine to receive restricted use approval from the Indian drug regulator. Dr. Reddy’s conducted trials in India on the behalf of Russian Direct Investment Fund, the makers of Sputnik V, and are in a pact to sell the first 250 million vials of the vaccine in the country.
Shares of Snowman Logistics rose as much as 15% — the most since Feb. 17 — on Thursday. That is the second straight day of gains, making the stock the best performer on S&P BSE Industrials Index.
- Trading volume was almost eight times the 20-day average for this time of day.
- Stock is down 14.5% year-to-date.
- Parent Gateway Distriparks Ltd.’s shares gained as much as 5.8%.
- 12-month return potential of the stock is at 96.7%, according to the consensus estimate of analysts tracked by Bloomberg.