Wockhardt surges 10% on signing Covid-19 deal with UK government

New Delhi: Shares of Wockhardt surged 10 per cent in Tuesday's trade after the biotechnology major said it has entered into an agreement with the UK government to fill-finish Covid-19 vaccines.

The manufacturing will be undertaken at CP Pharmaceuticals, a subsidiary of Wockhardt based in Wrexham, North Wales, the drugmaker said in a BSE filing.

Following the development, the stock hit 10 per cent upper circuit limit at Rs 333.70 on BSE.

As per the terms of the agreement, Wockhardt has reserved manufacturing capacity to allow for the supply of multiple vaccines to the UK government, including AZD1222, the vaccine co-invented by the University of Oxford and its spinout company, Vaccitech and licensed by AstraZeneca.

Founder Chairman at Wockhardt Habil Khorakiwala said: “The pandemic of Covid-19 is a challenge for all and needs a concerted effort to overcome. We are proud to be collaborating with the UK government to make vaccines available and the arrangement brings in a huge sense of purpose and pride, it upholds our ongoing commitment to fight against such a pandemic of global human importance," it said.

Meanwhile, the company at its 21st AGM approved raising of up to Rs 1500 crore additional capital by way of one or more public or private offerings.

The company said its business was affected in the first quarter and that it put in place exacting protocols to ensure business continuity while adhering to stringent safety guidelines.

"Our API formulations facility operated at near-normal productivity by manufacturing 19 mt of APIs worth Rs 25 crore as against a target of Rs 24 mt worth Rs 29 crore. Our US manufacturing facility produced 2.6 million units as per plan and released 2.5 million units for sale. Our Emerging Markets business was normal, though the dispatch of goods by sea for the first time
created delays," it said.

The R&D facility in Aurangabad now works in 2 shifts and has led 2 Abbreviated New Drug Applications (ANDAs) during the period, the company said.