Pharmanet soars on production deal

Shares in Leederville-based biotechnology company Pharmanet have soared on a production and supply contract for its muscular and arthritic pain treatment.

Pharmanet finalised a deal with Melbourne-based Quantum Pharmaceuticals over the ThermaLIFE product.

Under the deal, Quantum will supply raw material, production facilities, packaging, quality control and warehousing for the production through Australia.

"This arrangement allows production to occur close to key distribution points, alleviating additional handling costs," Pharmanet said.

In addition, the company said it plans to re-establish ThermaLIFE as an over-the-counter product in Australia before starting its international expansion plans.

Pharmanet is currently negotiating distribution arrangements for the product.

Shares in Pharamanet climbed 0.3 cents, or 60 per cent, to 0.8c at 12:20 AEST.