The share price of Hester Biosciences rallied over 14 percent after the company announced it will provide infrastructure for manufacturing Covaxin drug substance.

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Hester has estimated an outlay of Rs 40 crore for this project.

Vaccine maker Bharat Biotech has signed a memorandum of understanding (MoU) with Gujarat Covid Vaccine Consortium (GCVC), of which Hester Biosciences is a part.

“An MOU has been signed between Bharat Biotech International Ltd and GCVC towards contract manufacturing for the Drug Substance for COVAXIN. GCVC comprises of Gujarat Biotechnology Research Centre (GBRC), a Government of Gujarat undertaking, Hester Biosciences and Omnibrx Biotechnologies Pvt Ltd,” Hester Biosciences said in a regulatory filing.

According to the MoU, Bharat Biotech shall provide the technology for the production of the drug substance for Covaxin and GBRC will act as an advisor and mentor and will facilitate the technology transfer.

Hester shall provide the complete infrastructure at its Gujarat plant for the manufacturing of the drug substance, while Omnibrx shall act as a technology support partner, the company release said.

If everything goes as per the schedule, the drug substance would be available from August 2021 which will be supplied back to Bharat Biotech for producing Covaxin, it added.

This proposed manufacturing activity at Hester would not disturb any manufacturing or marketing forecasts of the company’s on-going business, for the financial year 2021-2022, the company said.

At 11:21 am, the stock was trading 7.21 percent higher at Rs 2,913.35 apiece on the BSE.

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