Shares of Strides Pharma Sciences jumped as much as 12.33 per cent to Rs 396 apiece on the BSE on Tuesday, after the company said its subsidiary in Singapore has formed a joint venture (JV) with Sihuan Pharmaceutical, a Chinese pharmaceutical company.
Strides Pharma Global Pte (Singapore) and Sun Moral International (Hong Kong), a wholly-owned subsidiary of Sihuan Pharmaceutical Holdings Group Ltd (Sihuan), have entered into a JV to form called Sihuan Strides HK Ltd where the latter will hold 49 per cent stake, according to a BSE Filing. CLICK TO READ PRESS RELEASE
"Strides will license four products immediately to this JV with an option to expand the portfolio subsequently. Strides will receive a licensing fee for each product in-licensed to the JV... Sihuan will leverage its 4,000+ strong salesforce and 3,000+ distributors across Mainland China to market the products," it said.
With the JV, Strides has tapped Chinese pharmaceutical market which is the second-largest pharmaceutical market with a $137 billion market opportunity. Sihuan has a market share of 8.3 per cent in the cardio-cerebral vascular market and presence in other therapeutic areas, the press release added.
“We are delighted to partner with Sihuan Pharmaceutical with the initial set of products having a significant market opportunity in China. We look forward to strengthening the partnership in the near term to build a strong pharmaceutical franchise in China," Arun Kumar, Group CEO and Managing Director, Strides said in a statement.
At 10:07 am, the stock was trading 10.2 per cent higher at Rs 388.3 per share as against a 0.46 per cent rise in the BSE Sensex.