Shares of Venus Remedies zoomed on June 22 morning after the pharma company said it has got the approval to market meropenem, a drug used in treating skin and abdominal infections, in Spain.
The company got the approval through its German subsidiary for 500 mg, 1 g and 2 g injections of this last-recourse antibiotic. Venus Remedies claims to be the largest Indian exporter of meropenem in the last three years.
“With plans to launch the product in December this year, we will be able to capture a 10 percent share in the $6.34-million meropenem market of Spain. It will help us strengthen our position in the European market as well," said Saransh Chaudhary, President, Global Critical Care, Venus Remedies.
At 11.20, the stock zoomed to Rs 248.80, hitting a 5 percent upper circuit on BSE.
A broad-spectrum antibiotic of the carbapenem class used in intensive care units of hospitals as a last resort for the treatment of life-threatening infections, meropenem contributes 40 percent to the company's total sales.
Click here for all market updates for the day
The market size for the broadspectrum antibiotic in Europe is about $70.34 million. Venus Remedies has launched this drug in major European markets under its own brand name and through strategic alliance partners by way of tieups. The company has secured more than 120 marketing authorisations for Meropenem throughout the world, it said.
“Riding on the upcoming marketing approvals for meropenem across Europe, we expect Venus Pharma GmbH to achieve a significant increase in turnover in the coming quarters. We are holding talks for more strategic tie-ups with multinational companies in other regulated markets," Venus Remedies Executive Director Akshansh Chaudhary said.
The company has managed to record about $27 million in sales solely through the marketing of meropenem. The facilities of Venus Remedies have a capacity of manufacturing 24 million units of meropenem per annum on single shift basis. The company is utilising 60 percent of its capacity, the pharma firm said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.