Sun Pharma gains after signing agreement with ICGEB to develop drug

Sun Pharmaceutical Industries rose 0.41% to Rs 801.65 at 14:25 IST on BSE after the company signed an agreement with International Centre for Genetic Engineering and Biotechnology to develop a novel botanical drug for treatment of dengue.

The announcement was made during market hours today, 4 May 2016

Meanwhile, the BSE Sensex was down 89.13 points, or 0.35%, to 25,140.57.

On BSE, so far 1.26 lakh shares were traded in the counter, compared with an average volume of 7.78 lakh shares in the past one quarter. The stock rose as much as 0.75% at the day's high of Rs 804.40 so far during the day. The stock fell as much as 1.4% at the day's low of Rs 787.10 so far during the day. The stock hit a 52-week high of Rs 1,010.10 on 25 May 2015. The stock hit a 52-week low of Rs 706.40 on 24 November 2015. The stock had underperformed the market over the past one month till 3 May 2016, falling 2.18% compared with the Sensex's 0.16% fall. The scrip had also underperformed the market in past one quarter, dropping 4.54% as against Sensex's 4.15% gains.

The large-cap company has an equity capital of Rs 240.68 crore. Face value per share is Re 1.

Sun Pharmaceutical said that through this agreement, Sun Pharma commits development of Cissampelos pariera (Cipa), a botanical drug in collaboration with International Centre for Genetic Engineering and Biotechnology (ICGEB). Through this agreement, Sun Pharma will follow up on earlier pre-clinical collaboration between ICGEB and erstwhile Ranbaxy Laboratories. Sun Pharma will develop Cipa, a botanical drug following a drug registration process similar to a new chemical entity, consisting of all required in-vitro, in-vivo, pre-clinical and clinical studies meeting all regulatory standards of India and other regulatory agencies worldwide.

The terms of this agreement permits Sun Pharma's access to all the intellectual properties of this drug across 17 countries. ICGEB will establish a ssay systems for development of Cipa for treatment of dengue infection for a pre-defined period of time. ICGEB will work exclusively with Sun Pharma for the development of this drug and clinical treatment strategies based on botanical and phyto-pharmaceuticals. Sun Pharma will pay royalties on sales post commercialisation. Other financial details of this agreement are confidential, Sun Pharma added.

The ICGEB is an international, non-profit research organization. Established as a special project of UNIDO, it became fully autonomous in 1994 and now counts over 60 member states.

Sun Pharmaceutical Industries' consolidated net profit jumped 258.3% to Rs 1416.60 crore on 2.3% rise in net sales to Rs 7046.57 crore in Q3 December 2015 over Q3 December 2014.

Sun Pharma is a specialty generic pharmaceutical company and India's top pharmaceutical company.

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