Hester Biosciences opened itself with a huge gap, up over 11% at Rs.3020 and went on further to Rs.3099, a surge of 14% but profit booking at this level, pushed the stock down and is now trading at Rs.2904 levels, nevertheless, up over 7%.

The stock price rose after it announced yesterday evening that a MoU has been signed between Bharat Biotech and Gujarat Covid Vaccine Consortium (GCVC) and Hester is a part of GCVC. Other two in the GCVC are Gujarat Biotechnology Research Centre (GBRC), a Government of Gujarat undertaking and Omnibrx Biotechnologies.

As per the MoU, Bharat Biotech shall provide the technology for the production of drug required to make Covaxin. GBRC will act as an advisor and mentor and will facilitate the technology transfer from Bharat Biotech.

Hester shall provide the complete infrastructure at its Gujarat plant for the manufacturing and Omnibrx shall act as a technology support partner This entire process is facilitated by Department of Biotechnology, Government of India.

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

Hester has estimated an outlay of Rs.40 crore for this project and stated that this proposed manufacturing activity at Hester would not disturb any manufacturing or marketing forecasts of Hester’s on-going business, for FY22.