Shares of Jubilant Pharmova Ltd. surged nearly 11 percent on Friday after the company announced that the Canadian government has approved a loan of CAD 23.8 million to part-finance the company’s capacity expansion of its manufacturing facility at Montreal.

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Canada-based pharmaceutical contract manufacturing firm Jubilant HollisterStier, a subsidiary of Jubilant Pharmova, will receive a partially repayable loan of CAD 23.8 million from the Strategic Innovation Fund (SIF) programme of the Canada government, the company said in a filing to the stock exchanges.

The loan facility is in addition to the earlier announced CAD 25 million loan announced by the Province of Quebec, for the CAD 108 million expansion project.

The project is aimed at upgrading the company's Montreal facility and to

increase its fill and finish capacity by over 100 percent.

The expansion project of 40,000 square feet facility will result in a modern sterile manufacturing site, offering a wide range of fill and finish capabilities with flexibility in dose forms and batch sizes.

Equipment at the facility will comprise high-speed vial filling with an isolator barrier system, freeze drying, and a flex line capable of handling syringes, vials, and cartridges.

The project will help strengthen the eco-system and place Canada in a better position to meet its future needs of vaccines and treatments for potential pandemics.

"The funding will enable our continued efforts to expand our capabilities in Canada and create more jobs," the company said,

Jubilant Pharmova is an integrated global pharmaceutical company engaged in manufacturing and supply of Radiopharmaceuticals with a network of 46 radio-pharmacies in the US, and five manufacturing facilities that cater to all the regulated market including the United States, Europe and other geographies.

Jubilant Pharmova's shares are trading 10.1 percent higher at Rs 305.90. This is the best single-day gain for the stock in over two years.

(Edited by : Rukmani Krishna)

First Published:Mar 17, 2023 12:18 PM IST