Shares of the recently-listed Symbiotec Pharmalabs Ltd. gained nearly 20% to hit a fresh post-listing high after the company announced a decade-long take-or-pay contract development and manufacturing agreement with a European alternative protein innovator.
The agreement reserves dedicated capacity for the partner at Symbiotec’s Ujjain campus for the full term, the company said.
As per the agreement, the production will be based at Symbiotec’s biomanufacturing campus in Ujjain, which features 4 kilo litre fermenters, modular downstream processing and integrated quality assurance and quality control capabilities.
Production begins at the existing facility, with a new dedicated plant of several hundred thousand litre of fermentation capacity to follow, and contracted expansion options reserved for the partner that take the program into the millions of litre, the company added.
Precision fermentation uses engineered microorganisms to produce proteins traditionally derived from animals. These ingredients must meet high-quality standards and be produced at a cost that allows wide adoption, two demands that usually pull against each other, the company said in the exchange filing.
Symbiotec added that it brings both the quality systems of a pharmaceutical manufacturer and a long record of building and running its own fermentation plants at scale.
The company’ managing director Anil Satwani said this fermentation-driven protein marks a major milestone in creating the clean, nutritious alternatives that consumers increasingly seek. He said Symbiotec is well-positioned to serve the alternative protein, human nutrition and industrial bioporducts sectors.
“Biotechnology is fundamentally changing how everyday products are made,” he said.
Shares of Symbiotec Pharmalab are now trading 19% higher after the announcement at ₹1,517. The stock made a muted debut on the exchanges in September this year. The stock is now up 50.3% from its issue price of ₹988.
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Symbiotec Pharmalabs shares surge 19% to a new post-listing high after 10-year deal with European protein innovator