Bajaj Healthcare share price hits NEW LIFE HIGH! What investors should know about stock movement

As the company aims to foray into manufacturing the Covid-19 drug, Bajaj Healthcare shares jumped 20 per cent to touch a new high of Rs 863.95 on the BSE intraday trade on Tuesday.  

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. 

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The stock at around 11:30 am is trading near 14 per cent higher to Rs 820 per share on the BSE, as compared to a 0.20 per cent decline in the S&P BSE Sensex.  

The trading volumes on the counter jumped over 10-fold with 393,000 shares changing hands so far against an average sub 35,000 shares traded in the past two weeks on the BSE. 

Currently, Eli Lilly and Company has received Emergency Use Authorization (EUA) from the US Food and Drug Administration (FDA) for the distribution and emergency use of ‘Baricitinib’ to be used in combination with remdesivir in hospitalized adult and pediatric patients aged more than two years with suspected or laboratory-confirmed COVID-19 requiring supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation (ECMO), the company said in a statement. 

EUA (Emergency Use Authorization) permits the emergency use of baricitinib, in combination with remdesivir, for treatment of suspected or laboratory-confirmed COVID-19 in hospitalized adults and paediatric patients above two years of age requiring supplemental oxygen, invasive mechanical ventilation, or ECMO. 

Bajaj Healthcare approached Eli Lilly & Company on two occasions, to sign the voluntary license for manufacturing and supply of Covid-19 Drug Baricitinib. BHL assured them, about manufacturing high-quality product at an affordable price for the Indian patient population. 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 moved to Indian Patent Office, requesting to grant a compulsory licence for manufacture and supply of Covid-19 Drug Baricitinib when all the attempts to get the voluntary license from the Patentee were futile, so that it can supply the essential medicine in this pandemic situation in India, the company said.