Orchid Pharma share price: Stock locked at 10% lower circuit as promoters to sell 3.28 million shares

As the promoters announced to sell the stake in the company, Orchid Pharma shares hit a lower circuit of 10 per cent to Rs 1,187.85 on the BSE on Thursday. The company on Wednesday has announced stake sale through an offer for sale from today, at the floor price of Rs 375 per share. 

Dhanuka Laboratories, one of the promoters of Orchid Pharma, in its filing to exchanges, proposed to sell in aggregate up to 3.28 million equity shares, representing 8.04 per cent of the total equity share capital of the company.  

The issue will be opened today for non-retail investors, and for retail investors on Friday. 

Adding further the company in its statement said, the sale is being undertaken by the seller, inter alia, for achieving the minimum public shareholding. The promoters held a 98.04 per cent stake in Orchid Pharma as of March 31, 2021, the shareholding pattern data shows on BSE. 

Orchid Pharma is a pioneer in Cephalosporin Antibiotics, R&D focused, inventor of Enmetazobactam (Ph.-3 Trials done in US & EU) acquired by Dhanuka Group through Corporate Insolvency Resolution Process (CIRP) a process on April 1, 2020. 

The small-cap pharma company while announcing its March quarter results on May 22, 2021, said that it had developed a new molecule known as OCID-5090, which was licensed to a company named Allecra Therapeutics, this molecule was undergoing clinical trials and the molecule has cleared the Phase 3 clinical trials. 

Allecra Therapeutics would now either directly or throughout license file for NDA of this molecule. Allecra has already out-licensed the product to Haini Pharmaceuticals, China for the Chinese Territory at a value of $78mn plus royalties. 

Orchid Pharma is entitled to receive a Royalty of 6-8 per cent on the worldwide sales of the product, according to IP Agreement between the two companies Orchid Pharma and Allecra Therapeutics.