Orchid Pharma shares jumped 12% intraday on 8 July after the company signed a $178 million licensing deal for Exblifep in Russia.

Orchid Pharma has tied up with a Russian company called Pharmasyntez JSC. Under this deal, Pharmasyntez will get the exclusive right to register and sell Exblifep across Russia.

Orchid, on its part, will manufacture the medicine and supply it to them. The tie-up still needs a go-ahead from Russia’s health ministry before it can roll out. This is not a small deal either.

The two companies expect it to bring in around $178 million over the first 10 years. That number comes from the fact that Russian hospitals badly need better antibiotics right now, and Pharmasyntez already has a strong network to sell into that market.

Exblifep is a medicine used to treat serious infections, including complicated urinary tract infections and pneumonia picked up in hospitals or on ventilators.

These infections are usually caused by tough bacteria that do not respond well to older antibiotics. The drug already has approval from health regulators in the US and Europe.

That matters here. Orchid Pharma is the first Indian pharma company to get its own new drug approved by both these regulators, which adds credibility to the Russia deal.

Managing Director Manish Dhanuka said the partnership would help get Exblifep to more patients by using Pharmasyntez’s reach inside Russian hospitals.

The stock has been on a strong run lately, up 78% over the past three months alone. It’s currently trading at Rs 1,002.55 as of 11:15 am, up 8.42% for the day.

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