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Panacea Biotec shares hit upper circuit in early trade, here's why

Panacea Biotec shares hit upper circuit in early trade, here's why

Panacea Biotec shares touched an intra day high of Rs 198.5 , up 5% on BSE. Market cap of the firm rose to Rs 1209.70 crore.

Mankind has agreed to retain Panacea Biotec's sales and marketing team engaged in the business. Mankind has agreed to retain Panacea Biotec's sales and marketing team engaged in the business.

Shares of Panacea Biotec rose 5% in early trade today after its arm Panacea Biotec Pharma Ltd (PBPL) inked agreements for the sale of its pharmaceutical formulations brands for India and Nepal, to Mankind Pharma Limited at a total consideration of Rs 1,872 crore.

The stock opened with a gain of 4.05% at Rs 196.70 against the previous close of Rs 189.05 on BSE. Panacea Biotec shares touched an intra day high of Rs 198.5 , up 5% on BSE.  Panacea Biotec shares are trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

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The stock has lost 0.78% since the beginning of this year and fallen 206% in one year.

Total 5,868 shares of the firm changed hands amounting to a turnover of Rs 11.59 lakh on BSE. Market cap of the firm rose to Rs 1209.70 crore on BSE. The share hit a 52-week high of Rs 453.70 on May 28, 2021 and a 52-week low of Rs 163.80 on November 23, 2021.

Mankind has agreed to retain Panacea Biotec's sales and marketing team engaged in the business. The aim of the sale is to become debt free and focus on exports of pharmaceutical formulations in US and other international markets besides the vaccine business in global markets.

"The transaction marks a very historical event which brings about the perfect confluence of both the organisations to complement each other. Panacea has created a niche in the chronic and transplant business and their products are inherently backed up with thorough R&D and are supported by highly complex and distinctive technology," said Mankind Pharma Managing Director and Vice-Chairman Rajeev Juneja.

"Through the acquisition, Mankind Pharma will be able to explore new therapeutic areas and create visibility in lifestyle, oncology and transplant business," he added.

Panacea Biotec is engaged in research and development, manufacturing, sales, distribution and marketing of pharmaceuticals, vaccines and biosimilars business.

The company's research areas include new chemical entities (NCE), new biological entities (NBE) novel drug delivery system (NDDS) based pharmaceutical formulations, novel peptides and human monoclonal antibodies and vaccine development.

Its product portfolio includes pain management, diabetes & cardiovascular management, oncology, renal disease management, osteoporosis management, anti-tubercular, gastrointestinal care products and vaccines.