Panacea Biotech Stock: This small-cap pharma companys shares surge near 120% in 3 months - check what analyst says

The shares of Panacea Biotec surged near nine per cent to Rs 411 per share on the BSE intraday trade today, as the company gets DGCI approval to manufacture Sputnik V Covid-19 vaccine.

The small-cap pharma company in its filing to exchanges said, “It is delighted to announce the receipt of manufacturing license from Drug Controller General (India) for Sputnik V vaccine against Covid-19 pursuant to its collaboration with Russian Direct Investment Fund (Russia’s sovereign wealth fund).”

At around 12:40 pm, the stock is trading over five and a half per cent higher to Rs 397.6 per share on the BSE as compared to a 0.63 per cent rise in the S&P BSE Sensex on Monday.

Similarly, in the last three months, the stock has jumped almost 120 per cent from Rs 177.4 per share on March 31, 2021, on the BSE.

Sputnik V was registered in India under the emergency use authorization procedure on April 12, 2021, and vaccination against Covid-19 with the Russian vaccine started on May 14, 2021, the company said in a statement filed to exchanges on Sunday.

The market analyst Simi Bhaumik says the stock looks good on a chart and should grow to Rs 450-480 per share on a short-term basis on the back of current news related to the company. She sets a stop loss of Rs 380 per share. 

"The batches produced at Panacea Biotec’s facilities at Baddi, Himachal Pradesh were earlier shipped to the Gamaleya Center in Russia for quality control. The said batches have successfully passed all the checks for quality parameters both at the Gamaleya Center in Russia and at the Central Drug Laboratory, Kasauli, Himachal Pradesh in India,” the company said in a release.