SPARC zooms on parent pact with Merck

Sun Pharma Advanced Research Company (SPARC) has rallied 16% to Rs 91 after Sun Pharma; the parent company said that a research-oriented listed company will contribute its technology for the Joint Venture (JV) wherever necessary.

"SPARC will contribute its technology and whenever the products of the JV are developed, SPARC will get upfront and milestone payments," said Dilip Shanghvi, chairman and managing director of the company.

On Monday, Sun Pharma has announced that it is setting up a JV with Merck & Co to develop, manufacture and sell new combination and versions of branded generics in emerging markets.

The emerging markets are expected to drive 90% of the world's pharmaceutical growth, with 75% of that growth will come from sales of brand-name generics, the company said in a filing to the stock exchanges.

The stock opened at Rs 80.15 and hit a high of Rs 93 on the NSE. The trading volumes on the counter jumped more than ten-fold with 4.46 million shares changing hands so far as against an average of less than 400,000 shares traded daily in past two weeks.