Shares of Orchid Pharma Ltd. surged as much as 5% on Thursday, July 31, hitting the upper circuit at ₹740.10. The stock extended its winning streak for a second consecutive session, driven by a strategic move to reclaim global rights to its breakthrough antibiotic.The company announced the acquisition of 100% global ownership of its novel antibiotic Enmetazobactam, which was originally discovered and developed in-house.
The drug, marketed internationally as EXBLIFEB by Germany-based Allecra Therapeutics, and as Orblicef in India, had been out-licensed by Orchid in 2013 (excluding Indian rights).
In a huge development, Orchid has now bought back full global rights from Allecra. The move comes after EXBLIFEB received regulatory approval from the European Medicines Agency in January 2024 and a USFDA nod in February 2024.Allecra had previously out-licensed regional rights, to Shanghai Haini for China in a deal worth $78 million in 2020, and to Advanz Pharma for the EU market.
The drug, marketed internationally as EXBLIFEB by Germany-based Allecra Therapeutics, and as Orblicef in India, had been out-licensed by Orchid in 2013 (excluding Indian rights).
In a huge development, Orchid has now bought back full global rights from Allecra. The move comes after EXBLIFEB received regulatory approval from the European Medicines Agency in January 2024 and a USFDA nod in February 2024.Allecra had previously out-licensed regional rights, to Shanghai Haini for China in a deal worth $78 million in 2020, and to Advanz Pharma for the EU market.
Industry estimates peg the global peak sales potential for the drug at $150-200 million. Orchid termed the buyback a “full repatriation of India’s first novel antibiotic,” saying that the move is expected to be financially accretive and bolster its anti-infective portfolio.
Market watchers are now closely tracking European sales performance and the potential out-licensing of the drug in the US.
