06 Dec , 2021 By : monika singh
NEW DELHI: Shares of Eris Lifesciences NSE 2.74 % skyrocketed 10 per cent in early trading on Monday after the drugmaker said that it formed a joint venture (JV) with Mumbai-based MJ Biopharm to foray into the insulin segment.
The news sent the company’s scrip soaring to a high of Rs.774 as against the previous close of Rs705.10. The counter had touched a 52-week high of Rs.863 on October 19.
The JV, dubbed Eris Biopharm, would be in the ratio of 70:30, with Eris holding a 70 per cent stake. The new entity would mainly engage in marketing and distribution of human and analogue insulin including, Aspart and Glargine, reports on Friday said.
"With the formation of this JV with MJ, we are taking our commitment a step further. Over the next 10-15 years, growth in diabetes care will be driven by DPP4-SGLT2 combinations, Insulin Analogues and GLP1 agonists, given the superior clinical evidence on their ability to provide better glycemic control, cardio-renal protection, and weight management," Eris Lifesciences Chairman and Managing Director Amit Bakshi was quoted as saying in reports.
In July-September, Eris Lifesciences reported a 10 per cent on-year growth in profit after tax at Rs.118.3 crore.
The company’s revenue from operations gained nine per cent (year-on-year), clocking in at Rs.359.67 crore in July-September against Rs.329.99 crore in the same period a year ago.
The pharmaceutical major’s strong showing in the quarter gone by was primarily on account of the branded formulations business outstripping market growth by almost 50 per cent since before the pandemic.
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