CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Indian anti-diabetes drug makers ERIS, MJ Biopharm float JV

By Munikoti Rochan

10:31, 6 December 2021

A lady runs a blood sugar test on an elderly man at their home in India
The joint venture will tap 77 million diabetics in India – Photo: Shutterstock

Shares of India’s Eris Lifesciences surged in early dealings on Monday following news that the company would partner with domestic pharmaceutical rival MJ Biopharm to sell anti-diabetes medication in the country.

The stock, however, finished lower for the day, pulled down by downbeat trading sentiments.

ERIS, which shot up some 9.8% in early trade, ended 2.71% lower at INR686 on the National Stock Exchange (NSE), valuing the firm at around INR97bn ($1.3bn).

Tapping the local market

MJ Biopharm, which makes formulations for several ailments, would supply products to the venture, while Eris Lifesciences would handle sales and marketing, distribution and pharmacovigilance. The latter would hold a 70% stake in the joint venture (JV), according to a 3 December regulatory filing.

Eris, which sells oral diabetes drugs, said the deal “bridges an important gap” in its diabetes portfolio. The JV will sell human and analogue insulin (Glargine, Aspart, Lispro) and GLP-1 agonists (Liraglutide) among other biopharma products in India.

Eris stated that its debt-free and cash-surplus balance sheet gives it the “ability to invest for the long term”. The sub-continent has 77 million diabetic cases. “The availability of additional qualified suppliers will drive growth in India’s human insulin, analogues and GLP1 segments; we expect this to grow to (an over) $1bn market opportunity” by the year 2025-26, said a presentation to shareholders.

TSLA

237.98 Price
-2.230% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.12

GME

15.13 Price
-2.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.13

NVDA

459.35 Price
-3.080% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.18

ALT

5.92 Price
-8.840% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.05

Complementing strengths

Ahmedabad-headquartered Eris boasts of “strong credibility” with diabetologists, endocrinologists and other opinion leaders nationwide. The seller of the Zomelix and Gluxit tablets also claims a “deep coverage” of specialists and consulting physicians across metros.

Eris bought the Zomelix trademark for the local market from healthcare giant Novartis AG in 2019.

Mumbai-based MJ Biopharm manufactures anti-diabetes and cardio-vascular medicines, among other products. It operates two WHO-GMP/ PICS compliant production facilities in the country.

The maker of the recombinant DNA insulin injection has supplied over 14 million vials, in addition to over four million cartridges of human insulin to more than 25 markets globally since 2015.

Read more: India’s Anand Rathi Wealth raises .85m ahead of IPO

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading