The Palla Pharma Ltd (ASX: PAL) share price is among the top performers on the ASX market today. This comes after the company announced that it had received approval to change its manufacturing site to its Norway production facility.
During late afternoon trade, shares in the opiate-based pain relief medicine company are up 30.3% to 73 cents. It's worth noting that the company's shares rose to an intraday high of 82 cents in the first hour of market open.
Production facility change
The Palla Pharma share price is on the move after reporting a significant tailwind in its operations.
In today's release, Palla Pharma advised that United Kingdom's medicines regulator, MHRA, has given the green light to change the manufacturing site for its Co-Codamol tablet.
Palla Pharma's Co-Codamol products contain two painkilling ingredients, paracetamol and codeine. The tablet form product relieves short-lasting painful conditions where paracetamol alone is insufficient.
In addition to the approval, the regulator also gave the nod for the company's required marketing authorisations, as well as patient information leaflets and product packaging.
As a result, Palla Pharma immediately began producing its initial batches of the product in bulk. Once it has completed the packing process, it will move onto its sales process. The company noted that production would ramp up to meet the anticipated demand for the coming months.
The UK is the biggest market in Europe for painkiller relief tablets. Each kilogram of codeine phosphate sold as part of the approved Co-Codamol product has a higher gross margin than in active pharmaceutical ingredient form or tableted form as a contract manufacturer. This in-turn represents an increase in revenue generation for the company.
Palla Pharma revealed that it would release its full-year results on Friday, 26 February.
About the Palla Pharma share price
The Palla Pharma share price has taken investors on a rollercoaster ride in the past 12 months. The company's shares dipped to an all-time low of 45 cents in March, before storming to a 52-week high of $1.08.
At today's current share price of 72 cents, Palla Pharma is down around 15% from this time last year.
