Vivo Bio Tech executes a deal with Andhra Pradesh Med Tech Zone to set up new facility; Stock jumps over 6%

31 Jan 2022 , 11:37 AM

Vivo Bio Tech Ltd has informed that it has executed a lease deed with Andhra Pradesh Med Tech Zone Limited for setting up a new facility at Andhra Pradesh Med Tech Zone (AMTZ) Campus, Pragati Maidan, Visakhapatnam, Andhra Pradesh.

According to the filing, Vivo currently doesn’t have capacity in large animals. The new facility adds Pigs and Canines to Vivo’s small animal portfolio and this new facility, when fully functional can hold upto 178 large animals.

Further, the complete facility has been taken over by Vivo. By end of March, vivo is looking at operationalizing 25% of the capacity by end of FY 22-23, complete facility will be operational.

The additional investment like cages, lab equipment, accreditation costs, animals, Human resources will be needed in the next few quarters. Total monthly expenditure Rs30 Lacs (fixed) from March-22 and overall additional investment of Rs2.5cr will be further needed, said Company.

"This new acquisition will complete Biology portfolio of Vivo. Currently Vivo is offering services related to In-vitro studies, In-vivo studies, Physico- chemical studies, Regulatory and non-regulatory toxicology, Pharmacology, ADME, DMPK studies and sale of SPF rats and mice, Guinea Pigs and Rabbits and diagnostic services. The new addition will add medical device testing, DMPK, regulatory and nonregulatory toxicology testing services on large animals", the company further  added.

At around 11:26 AM, Vivo Bio Tech was trading at Rs69.80 apiece up by Rs4.15 or 6.32% on the BSE.