Godavari Biorefineries shares surge 14% on receiving Chinese patent

Shares of Godavari Biorefineries, the country’s leading ethanol based chemicals maker advanced as much as 14% to an intraday high of ₹258.50 on Wednesday, September 16, after the company informed exchanges that that the Chinese Patent Office has granted a patent for invention titled “Use of Compounds for Treating Viral Infections.”

According to the filing, the invention relates to the use of compounds that inhibit V-ATPase activity in cells. The patent also covers their use in the making of medicines for the treatment of viral infections.

The Chinese patent certificate identified Godavari Biorefineries as the patent owner and lists M. Atawale, S. Gawade, P. Kaka and S. Srivastava as the inventors.

The patent, numbered ZL 2021 8 0048053.9, carries grant publication number CN 115867276 B. The application was filed on May 10, 2021, while the grant was officially announced on Tuesday.

The certificate issued by China’s National Intellectual Property Administration states that the application was examined under the country’s patent law and that the patent right was granted and published. It added that the patent right takes effect from the date of the grant announcement.

The notification does not disclose the specific viral infections targeted by the compounds, the commercialisation plans, potential revenue from the patent or the financial impact of the Chinese patent grant.

Godavari Biorefineries Q1 earnings

Godavari Biorefineries in the first quarter of the current financial said that its net loss widened to ₹19 crore from ₹16 crore a year earlier.

Its revenue from operations advanced 5% to ₹588 crore in April-June period from ₹533 crore in the same period last year.

Its EBITDA dropped 92% to 48 lakhs and EBITDA margin contracted by 100 basis points.

As of 1:43 pm, Godavari Biorefineries shares traded 8.83% higher at ₹247, outperforming the NIFTY50 index which was up 0.44%.