Shilpa Medicare share price jumps 13% on agreement with Dr Reddy's for production of Sputnik V vaccine
The companies are also exploring the option to manufacture Sputnik Light, a single-dose version of the anti-coronavirus vaccine.
May 17, 2021 / 10:06 AM IST
Shilpa Medicare share price jumped 13 percent in the early trade on May 17 after the company entered into a three-year agreement with Dr Reddy's Laboratories Limited (DRL) for the production of Sputnik V vaccine for coronavirus.
The company via its wholly-owned subsidiary Shilpa Biologicals Private Limited (SBPL) entered into a three-year definitive agreement with Dr. Reddy's Lab for the production and supply of Sputnik V from its integrated biologics R&D-cum-manufacturing center at Dharwad, Karnataka, Shilpa Medicare said in the release.
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 HVIRDIF for clinical development of the vaccine and has distribution rights in geographies including India. DRL will facilitate the transfer of the Sputnik technology to SBPL.
Under the agreement, SBPL will be responsible for the manufacture of the vaccine, while DRL will take care of distribution and marketing.
The companies are also exploring the option to manufacture Sputnik Light, a single-dose version of the vaccine.
At 0934 hours Shilpa Medicare was quoting at Rs 501.40, up Rs 46.05, or 10.11 percent on the BSE.
The share touched a 52-week high of Rs 692.45 on August 11, 2020 and a 52-week low of Rs 317.05 on March 19, 2021. It is trading 28.33 percent below its 52-week high and 56.54 percent above its 52-week low.