InvestorQ : Why has Gland Pharma been moving up so sharply in price in recent weeks?
vaishnavi mhatre made post

Why has Gland Pharma been moving up so sharply in price in recent weeks?

Answer
image
vidhya Laxmi answered.
9 months ago
Follow

That is correct. Gland Pharma appeared to be stuck around the IPO price for a very long time and struggled to move up decisively. However, in the last few weeks, the stock has been on a continuous uptrend and has even managed to touch a post-listing high in terms of price. The one factor that has been driving the stock is the huge Russian order to manufacture and market COVID vaccines in India.

It may be recollected that the Hyderabad based Gland Pharma had recently came out with its IPO. Now it has entered into a definitive agreement with the Russian Direct Investment Fund or RDIF which has bankrolled the research into the COVID vaccine, Sputnik-V, which is Russia’s indigenous vaccine against the COVID-19 affliction. Gland Pharma has now signed an agreement to supply 252 million doses of Sputnik-V vaccine.

Gland Pharma will be utilizing its own manufacturing facilities in the state of Telangana in South India for the production of Sputnik-V vaccines for COVID-19. It is estimated that Gland Pharma will commence production in Q3-2021 and the actual delivery is likely to start from Q4-2021. Gland Pharma has deep expertise in manufacturing sterile injectables on an extremely large scale and that should be a boost for the vaccine plans in India.

Apart from Gland Pharma, Hetero Drugs and Reddy Labs are also working closely with RDIF for Sputnik-V. In fact, Hetero Drugs has also given a volume manufacturing commitment to RDIF for the Sputnik-V vaccine while Reddy Labs is also involved in testing, clinical administration and getting approvals from the government for Sputnik-V.

0 Views