Shares of the Raichur-based drug maker Shilpa Medicare rallied for second straight session on Tuesday after it tied up with Dr Reddy's Labs to make Sputnik V Vaccine. Shilpa Medicare shares rose as much as 13 per cent to hit an intraday high of Rs 574.90. In the last two trading sessions, Shilpa Medicare shares have rallied 26 per cent massively outperforming the Sensex.
"Shilpa Medicare's wholly owned subsidiary Shilpa Biologicals Private Limited (SBPL), has entered into a 3 year Definitive Agreement with Dr. Reddy's Laboratories Limited (DRL) for production-supply of the Sputnik V vaccine from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka," the company said in a stock exchange filing.
"DRL has partnered with HVIRDIF for clinical development of the vaccine and has distribution rights in geographies including India. DRL will facilitate the transfer of the sputnik technology to SBPL. Under the agreement, SBPL will be responsible for manufacture of the vaccine, while DRL is responsible for distribution/marketing of the vaccine in its marketing territories," Shilpa Medicare said.
The companies are also exploring the option to manufacture Sputnik Light, a single dose version of the vaccine in the near future. The company views Biologics as a strategic growth area and has made significant investments in setting up a High end, Flexible Biologics facility in Dharwad to cater to the requirements of the fast growing biologics field, that include the adenoviral, subunit & DNA vaccines, Monoclonal antibodies & fusion proteins.
As of 12:23 pm, Shilpa Medicare shares traded 5.83 per cent higher at Rs 539.25, outperforming the Sensex which was up 1.3 per cent.
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