Shares of Sun Pharmaceutical Industries are trading sharply higher after the company and China Medical System Holdings entered into licensing agreement for generic products in mainland China.
Sun Pharmaceutical Industries announced after market hours on Friday, 16 August 2019 that one of its wholly owned subsidiaries has granted an exclusive license to a subsidiary of China Medical System Holdings (CMS) to develop and commercialize seven generic products in Mainland China.
Boosted by this development, the scrip is currently trading higher by 2.66% to Rs 425.80. The stock has moved in a range of Rs 425.40 to Rs 421.40 so far during the day. The scrip saw volume of 65,000 shares.
Meanwhile, the S&P BSE Sensex was up 195.45 points or 0.52% to 37,545.78.
The collaboration with CMS now covers eight generic products. The total addressable market size for all these eight products is about US$ 1 billion (as per recent IQVIA data) in Mainland China. The initial term of the agreement shall be 20 years from the first commercial sale of the respective products in Mainland China and may be extended for additional three years' as per mutual agreement of the two parties.
Dilip Shanghvi, Managing Director, Sun Pharma said that this collaboration gives the company an entry into the Chinese generic pharmaceutical market.
Sun Pharma is the world's fourth largest specialty generic pharmaceutical company and India's top pharmaceutical company.
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