Bajaj Healthcare hits record highs on applying patent for Covid drug
After scaling fresh peak, the scrip closed with a 13% gain at Rs 813.35 apiece on the BSE
Shares of Bajaj Healthcare surged 20% intraday on Tuesday to hit a fresh lifetime high of Rs 863.95 apiece on the BSE after the company announced that it has applied for license for manufacturing & supply of Covid-19 drug.
After scaling fresh peak, the scrip closed with a 13% gain at Rs 813.35 apiece on the BSE, while the benchmark Sensex settled 185.93 points or 0.35% lower at 52,549.66.
Bajaj Healthcare on Monday in an exchange filing announced that “it has moved the Indian Patent Office requesting to grant a compulsory license for manufacturing & supply of Covid-19 drug “Baricitinib” (API and formulation).” The company is a leading manufacturer of active pharmaceutical ingredients (APIs), intermediates, and formulations.
The company had approached Eli Lilly & Company on two occasions to sign the voluntary licence for manufacturing and supply of Baricitinib and had assured it about manufacturing a high-quality product at an affordable price for the Indian patient population, Bajaj Healthcare said in a filing to BSE.
Eli Lilly & Company declined the applications on both the occasion, citing the reason that it is really challenging for them to sign voluntary licensing agreements with all the Indian companies who have requested for the same, it added.
“When all the attempts to get the voluntary licence from the patentee were futile, BHL moved to Indian Patent Office, requesting to grant compulsory licence for manufacture and supply of COVID-19 Drug Baricitinib, so that it can supply the essential medicine in this pandemic situation in India,” Bajaj Healthcare Ltd (BHL) said.
“We have moved the Indian Patent Office to grant a compulsory licence for manufacturing & supply of Covid Drug Baricitinib (API and formulation). Currently, the drug Baricitinib is licensed to US pharma giant Eli Lilly & Company, by its originator company INCYTE, providing them with the rights for marketing it across the globe,” Bajaj Healthcare Ltd Joint MD Anil Jain said.
Considering Bajaj Healthcare’s manufacturing capabilities and strong in-house R&D team, “we can produce ‘Baricitinib’ at very competitive and affordable prices in India,” he added.
Eli Lilly and Company has already inked voluntary licensing agreements with Indian pharma majors such as Sun Pharma, Cipla, Lupin, Torrent Pharmaceuticals, Dr Reddy’s and MSN Laboratories to expedite the availability of Baricitinib for treatment of COVID-19 patients in India.
Eli Lilly and Company have received permission for restricted emergency use by the Central Drugs Standard Control Organization (CDSCO), for Baricitinib to be used in combination with Remdesivir for the treatment of suspected or laboratory-confirmed COVID-19 in hospitalised adults requiring supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation.