Objective of buyback is to highlight that biz is doing well – Panacea Biotec

Objective of buyback is to highlight that biz is doing well; looking at revenues of Rs 300 Cr from Pentavelent each yr for 3 yrs; may look at pvt placement to explore inorganic growth opportunities: Panacea Biotec

Rajesh Jain, Joint MD of Panacea Biotec said that the objective of buyback is to highlight to people that the business is doing well. The company is looking at revenues of Rs 300 crore from Pentavelent each year for 3 years. Biovalent Polio Vaccine will be an additional revenue to the company.

He further said that the company may look at private placement to explore inorganic growth opportunities. However, there are no plans yet. Fund raising is an option and the company will pursue it at the right time, he added.

Panacea Biotec has informed that the Board of Directors of the company at its meeting held on December 30, 2009 considered and approved the buy-back of its shares of Re 1 each, by way of Open Market Purchases through Stock Exchanges, subject to the approval of Shareholders. The approved maximum buy-back price is Rs 189 per share, which is lower than the current market price of the stock, with the maximum number of shares proposed for buy-back as 55,92,000 equity shares for an aggregate amount not exceeding Rs 105.69 crore.

Panacea Biotec expect H2FY10 to be 5x H1FY10. The company has received $ 225 million order from UNICEF. The contract has enhanced the long-term visibility of the company. The drug maker also has successfully developed BOPV vaccine.

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