Alembic Pharma gains after an associate company announces license agreement with Novartis

Alembic Pharmaceuticals rose 1.41% to Rs 678 at 9:57 IST on BSE after the company said its associate company, Rhizen Pharmaceuticals, has outlicenced its molecule to Novartis.

The announcement was made before trading hours today, 10 December 2015.

Meanwhile, the BSE Sensex was up 108.46 points, or 0.43%, to 25,144.51.

On BSE, so far 2,269 shares were traded in the counter, compared with an average volume of 12,000 shares in the past two weeks.

The stock hit a high of Rs 688 and a low of Rs 670.40 so far during the day. The stock hit a 52-week high of Rs 791.70 on 15 July 2015. The stock hit a 52-week low of Rs 381.90 on 26 February 2015.

Alembic Pharmaceuticals said that Rhizen Pharmaceuticals has entered into an exclusive, worldwide license agreement with Novartis for the development and commercialization of Rhizen's inhaled dual P13K-delta gamma inhibitor and its closely related compounds for various indications.

Under the terms of the agreement, Rhizen will receive an upfront payment and is eligible to receive development, regulatory and sales milestones payments. In addition Rhizen is also eligible to receive tiered royalties on annual net sales, the company said.

The lead compound is a novel, potent, and selective dual P13K-delta gamma inhibitor with demonstrated anti-inflammatory and immuno-modulatory activity in preclinical systems and models representative of respiratory diseases. With a favorable ADME and PK profile and high therapeutic index in animals, the inhaled dual P13K-delta gamma inhibitor holds promise in the treatment of human airway disorders, it added.

Rhizen Pharmaceuticals is an innovative, clinical-stage biopharmaceutical company focused on the discovery and development of novel therapeutics for the treatment of cancer, immune and metabolic disorders. Since its establishment in 2008, Rhizen has created a diverse pipeline of proprietary drug candidates targeting several cancers and immune associated cellular pathways. Rhizen is headquartered in La-Chaux-de-Fonds, Switzerland.

Alembic Pharmaceuticals' consolidated net profit jumped 274% to Rs 289 crore on 85% rise in net sales to Rs 1018 crore in Q2 September 2015 over Q2 September 2014.

Alembic Pharmaceuticals is a leading pharmaceutical company.

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