Triple-Digit PE Pharma Stock Jumps 10% as Company Signs Russia Licensing Deal; Share Price Crosses Rs 1,000

On Wednesday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 0.61 per cent to 24,250.75. The Nifty Pharma index, however, traded higher by 0.30 per cent at 25,753.80. Amid the sectoral strength, Orchid Pharma share price traded at Rs 1,013.25, up 9.58 per cent from the previous close. The stock witnessed strong investor interest, with trading volumes of 1.90 lakh shares.

Orchid Pharma Signs Licensing and Supply Agreement

Orchid Pharma announced that it has entered into a licensing and supply agreement with Pharmasyntez JSC, Russia, for the commercialisation of Exblifep® (cefepime/enmetazobactam), a novel combination antibiotic indicated for the treatment of complicated urinary tract infections (cUTI) and hospital-acquired and ventilator-associated bacterial pneumonia (HAP/VAP), subject to regulatory approval from the Ministry of Health of the Russian Federation. The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Potential Opportunity of USD 178 Million

Under the agreement, Pharmasyntez will receive the exclusive rights to register and commercialise Exblifep in Russia, while Orchid Pharma will supply the finished dosage form. The company said the partnership represents a potential opportunity of approximately USD 178 million over the first 10 years, driven by the unmet clinical need and significant hospital procurement volumes in the Russian market.

Exblifep is a carbapenem-sparing antibiotic developed to combat infections caused by ESBL-producing Gram-negative bacteria. The product has already received approvals from both the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA). It is also included in the IDSA and EUCAST treatment guidelines and is the first new chemical entity originating from an Indian pharmaceutical company to secure approvals in both the US and Europe.
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Management Commentary

Commenting on the partnership, Manish Dhanuka, Managing Director of Orchid Pharma, said, "Our partnership with Pharmasyntez marks an important step in making Exblifep available to patients in Russia. Pharmasyntez's deep reach into the Russian hospital procurement system makes them the right partner to ensure this medicine gets to the clinicians and patients who need it."

Natalia Malykh, Vice President of Business Development at the Pharmasyntez Group, said, "Antimicrobial resistance is one of the most significant challenges facing modern medicine, making the development of new antibiotics critical. Orchid Pharma has met this challenge by developing the novel antibiotic Exblifep®. This licensing agreement with Pharmasyntez enables Russian patients to gain access to modern antibacterial therapy."

About Orchid Pharma

Orchid Pharma Limited is a vertically integrated pharmaceutical company with capabilities spanning Key Starting Materials (KSMs), Active Pharmaceutical Ingredients (APIs), and Finished Dosage Forms (FDFs). The company focuses on complex injectable antibiotics and operates manufacturing facilities compliant with USFDA and EU-GMP standards.

Orchid Pharma is the first Indian pharmaceutical company to develop a new chemical entity approved in both the United States and Europe, with its products being commercially marketed in Europe and India.

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Disclaimer: The article is for informational purposes only and not investment advice.