Shares of Orchid Pharma Ltd are locked in the upper circuit on 31st July, driven by its strategic move to reclaim global rights to its breakthrough antibiotic.

Orchid Pharma announced that it has acquired 100% global ownership of its novel antibiotic, Enmetazobactam. This antibiotic was originally discovered and developed in-house.

The drug is marketed as EXBLIFEB by Germany-based Allecra Therapeutics internationally and as Orblicef in India. Orchid had out-licensed its global rights in 2013, except for India.

In a major move, Orchid has now acquired full global rights from Allecra. This followed approval from the European Medicines Agency in January 2024 and the US FDA in February 2024.

Allecra had earlier licensed rights to Shanghai Haini for China in a $78 million deal in 2020. It also licensed the drug to Advanz Pharma for the EU market.

Industry estimates put the drug’s global peak sales potential at $150–200 million. Orchid called the move a “full repatriation of India’s first novel antibiotic.” The company said it would strengthen its anti-infective portfolio while being financially accretive. Analysts are now watching European sales trends. They are also watching potential out-licensing in the US.

At 1:45 PM, the shares of Orchid Pharma were locked in an upper circuit at Rs 740.40 on NSE.

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