Shilpa Medicare rallied 10.46% to Rs 503 after the company said it has entered into a three-year definitive agreement with Dr. Reddy's Laboratories for production and supply of the Sputnik V vaccine.
In an exchange filing on Monday, Shilpa Medicare said that through its wholly owned subsidiary, Shilpa Biologicals, will produce and supply the Sputnik V vaccine from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka.The targeted production of the dual vector Sputnik V for the first 12 months is 50 million doses (50 million of Component 1 and 50 million of component 2), from the date of start of commercial production.
Dr. Reddy's has partnered with HV/RDIF for clinical development of the vaccine and has distribution rights in geographies including India. Dr. Reddy's will facilitate the transfer of the sputnik technology to Shilpa Biologicals. Under the agreement, Shilpa Biologicals will be responsible for manufacture of the vaccine, while DRL is responsible for distribution/marketing of the vaccine in its marketing territories.
The companies are also exploring the option to manufacture Sputnik Light, a single dose version of the vaccine in the near future.
The company views biologics as a strategic growth area and has made significant investments in setting up a High end, Flexible Biologics facility in Dharwad to cater to the requirements of the fast growing biologics field, that include the adenoviral, subunit & DNA vaccines, Monoclonal antibodies & fusion proteins.
Shilpa Medicare is a global brand in manufacturing and supplying of affordable API and formulation globally in different regulated markets. The company's consolidated net profit dropped 86% to Rs 7.67 crore on a 19.3% fall in net sales to Rs 191.25 crore in Q3 FY21 over Q3 FY20.
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