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Sun Pharma gains after entering into collaboration to develop novel dengue vaccine

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Industries rose 1.51% at Rs 755.15 at 14:10 on after the company announced new exclusive collaboration to develop novel dengue vaccine for & global markets.

The announcement was made during market hours today, 19 October 2016.

Meanwhile, the S&P Sensex was up 5.50 points or 0.02% at 28,056.38.

On BSE, so far 1.2 lakh shares were traded in the counter as against average daily volume of 2.84 lakh shares in the past one quarter. The stock hit a high of Rs 759 and a low of Rs 747 so far during the day. The stock had hit a 52-week high of Rs 913.70 on 20 October 2015. The stock had 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 18 October 2016, falling 5.17% compared with 1.92% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 4.21% as against Sensex's 1.1% rise.

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

International Centre for Genetic Engineering and Biotechnology (ICGEB) and Sun Pharma announced their new collaboration for development of a dengue vaccine, targeted against all the four serotypes of Dengue virus that cause disease in humans. ICGEB has developed a tailored recombinant virus-like-particle (VLP) based tetravalent dengue vaccine, containing host-receptor binding domain of envelope protein of all the four DENV serotypes. ICGEB has conducted pre-clinical studies over the past seven years and developed the existing know-how and patents for this dengue vaccine candidate. This is the second collaboration between Sun Pharma and ICGEB focusing on dengue. The first one announced in May 2016 was related to the development of a botanical drug for treatment of Dengue. The current collaboration is focussed on developing a novel, safe & effective vaccine for the prevention of dengue.

This vaccine development will focus on suitability for all target population whether previously affected or non-affected, including paediatric and adults and traveller population.

According to the agreement signed, Sun Pharma will fund & support further development of the vaccine candidate and existing ICGEB know-how and patents. ICGEB will grant Sun Pharma exclusive rights and licenses for development and commercialisation of this vaccine globally. ICGEB will receive pre-defined royalty & milestone payments. A joint development committee, comprising members of both the organisations, will be established to provide oversight to the dengue vaccine development program. According to the agreement signed, ICGEB shall disclose and make available to Sun Pharma all such existing ICGEB know-how as well as effective completion of technology transfer by ICGEB to Sun Pharma within stipulated timeframe. Since, ICGEB is not related to promoter/promoter group/ group companies of Sun Pharma, this transaction does not fall under related party transaction.

Sun Pharma will set-up a Dengue Vaccine Advisory group to provide technical and regulatory support to the vaccine development programme. It will also be exclusively responsible for all regulatory filings for the product globally including, without limitation, CDSCO-India, WHO, USFDA, EMA, MHRA etc. The company will explore commercialisation opportunities to provide this vaccine to patients across India, emerging markets, western Europe, Japan and USA at affordable costs post regulatory approvals in these markets. The immediate priority of this partnership is to complete the toxicology studies for further development of the program.

Sun Pharma's consolidated net profit surged 265.8% to Rs 2033.71 crore on 22.7% growth in net sales to Rs 8006.68 crore in Q1 June 2016 over Q1 June 2015.

Industries is the world's fifth largest specialty generic pharmaceutical company and India's top pharmaceutical company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, October 19 2016. 14:13 IST