Transgene Biotek trades in red on the BSE

Transgene Biotek is currently trading at Rs. 52.00, down by 0.45 points or 0.86% from its previous closing of Rs. 52.45 on the BSE.

The scrip opened at Rs. 53.90 and has touched a high and low of Rs. 57.80 and Rs. 51.50 respectively. So far 128231 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 62.50 on 16-Nov-2011 and a 52 week low of Rs. 29.00 on 23-Sept-2011.

Last one week high and low of the scrip stood at Rs. 61.40 and Rs. 45.15 respectively. The current market cap of the company is Rs. 344.96 crore.

The promoters holding in the company stood at 15.79% while Institutions and Non-Institutions held 0.23% and 23.16% respectively.

Transgene Biotek has formalized the sale of technology of one of its bio-generic products, Erythropoietin to TSS EXPORT GmbH FZE for a total consideration of $5 million. This sale of technology is expected to be completed during a period of approximately 5-6 months.

The market for Erythropoietin drug, is getting to be very competitive and crowded in the recent years and in order to primarily focus on the company’s highly exciting and novel drug pipeline advancing rapidly, the management of Transgene has taken a decision to monetize some of the dormant technologies (products) through either out-licensing or strategic partnerships within and outside India.

Transgene has started commercial production of DHA, an Omega-3 fatty acid at a third party facility, as per the schedule, during the early part of October, 11 and stabilization process for continuous batch production is in progress. Subsequent to the stabilization of batch production, the management is to focus on the commercial production of another API, one of the products in its generic drug pipeline.

Simultaneous with the commercial production of APIs from the current facility catering primarily to non-regulated markets, the management is in active dialogue with few select European and North American companies for strategic partnerships to manufacture and market these APIs into regulated markets.

Also the company in the recent years had out-licensed two of its technologies - a recombinant Hepatitis B Vaccine to one of the largest vaccine producers in the world, and more recently Orlistat to one of the biggest Indian pharma companies with a significant presence on the global arena.

With the stabilizing influence from the enhanced production and sale of APIs across the global markets and, potential returns from monetization of some of its dormant bio-generic products combined with potentially significant revenues from the out-licensing of a series of novel bio-technology products provide a sound platform to generate substantial returns to the stake holders.

Transgene Biotek, is a biotechnology company. It is involved in the development of several cutting edge technologies.