Ranbaxy inks pact with Cipher; stock hits 52-week high

Sun Pharma also rallied by nearly 3% to Rs 769, its new high on National Stock Exchange.

Ranbaxy Laboratories is trading 2% higher at Rs 572 after the company said it has signed a licensing agreement with Canada’s Cipher Pharmaceuticals Inc to exclusively market, sell and distribute Cipher’s isotretinoin capsules in Brazil.

The agreement extends the current relationship with Cipher, under which Ranbaxy is marketing and distributing Cipher’s isotretinoin product in the US under the brand Absorica.

Under the terms of the agreement, Cipher will receive an upfront payment and is eligible for additional pre-commercial milestone payments. While Cipher will supply the product, Ranbaxy will be responsible for gaining regulatory approval of the product in Brazil, Ranbaxy said in a press release.

The stock opened at Rs 566 and hit a 52-week high of Rs 575 on NSE. A combined 440,000 shares changed hands on the counter so far on NSE and BSE.

Meanwhile, shares in Sun Pharmaceutical Industries too rallied by nearly 3% to Rs 769, also its new high on NSE. Earlier this week, Sun Pharma, which has been awaiting various regulatory approvals for its $4-billion merger deal with Ranbaxy, has received clearance from the BSE and the NSE.