Hester has initiated the development of a vaccine against COVID-19 disease. A recombinant vaccine is being developed in collaboration with IIT Guwahati
NE BUSINESS BUREAU
AHMEDABAD, JUNE 27
Hester Biosciences Limited on Friday reported a 60 percent decline in profit after tax at Rs 5 crore for the fourth quarter ended March 31, 2020, which was Rs 12.38 crore in the same period of last year, a company release said.
During the reporting period, the company reported a 15 percent drop in sales at Rs 41.43 crore against Rs 48.83 crore in the corresponding period of last fiscal. CEO & MD Rajiv Gandhi
“During FY20, we invested in sales and marketing in order to drive an increase in sales, by covering larger territories and expanding our presence in the market through additional field force. The investment did not provide commensurate growth, resulting in high costs that have impacted the bottom line. The Poultry Health division showed a de-growth of 5%. The division was directly impacted due to the poultry industry which remained in a recessionary condition throughout the year. Things seemed to improve in Jan 2020 but were subject to a set back from mid-Feb 2020. The Animal Health division registered a growth of 6%. Supplies under tenders that were expected to be executed in Q4 have got delayed due to reasons beyond our control. Exports grew by 63% in FY20. However, the company has been successful in maintaining the GP ratio,” CEO & MD Rajiv Gandhi said.
The National Animal Disease Control Programme of the Government of India is expected to be implemented for the Brucella vaccine (which was supposed to have been started from Feb 2020). Hester is one of the two suppliers for this vaccine. Further, Hester has initiated the development of a vaccine against COVID-19 disease. A recombinant vaccine is being developed in collaboration with IIT Guwahati. We hope to get into animal trials by the end of this calendar year. Hester has entered into a technical collaboration agreement with Novapharma in EGYPT. Under this agreement, Hester would transfer technology to manufacture veterinary vaccines. Hester would also have exclusive international marketing rights for the full range of vaccines manufactured at Novapharma, including the Avian Influenza disease vaccine for poultry, which is an emerging disease in the poultry sector, Gandhi added.
The Board of directors has recommended a dividend of Rs 6.60 per equity share (66%) for FY20, subject to the approval of the shareholders.
