today announced that it has entered into a global licensing agreement with the CSIR Indian Institute of Chemical Technology, Hyderabad (CSIR-IICT), for patents related to certain compounds with potential therapeutic activity across multiple indications in Sun Pharma’s specialty focus areas.
Under the terms of the license agreement, Sun Pharma gets exclusive global license for the said patents and any other future patents covered in the agreement.
Sun Pharma will pay CSIR-IICT upfront and potential development, regulatory and sales milestone payments totaling up to Rs240cr, plus royalties on net sales from commercialization of the products developed using these patents.
Sun Pharma will be responsible for development, regulatory filings, manufacturing and commercialization of these potential products.
Dilip Shanghvi, Managing Director, Sun Pharma said, “This collaboration with CSIR-IICT for developing new drugs is part of our broader strategy for enhancing our global specialty pipeline. CSIR-IICT is well-known for its high quality research and we are proud to be associated with them. We are making earnest efforts to bring innovations from Indian research institutes to the market to address the unmet needs of patients globally. Our collaboration with CSIR-IICT is a step in this direction.”
Meanwhile, the co.'s shares are down 5% with brokerages mixed on the stock post its Q1 results.
As per media reports, HSBC highlighted that the Q1 numbers were largely in-line at the operating levels, however, cost pressure would continue due to ongoing spend for Ilumya & Cequa, maintaining a hold rating on the stock.
CLSA, maintained a buy rating on the stock, raising the target price to Rs 540 from Rs 520. It stated that the company is gradually getting back on track and the ramp-up of the speciality product portfolio will be a key catalyst for growth.
Credit Suisse had a neutral call on the stock.
Sun Pharmaceuticals Industries Ltd is currently trading at Rs416.50 down by Rs21.05 or 4.81% from its previous closing of Rs437.55 on the BSE.
The scrip opened at Rs440.70 and has touched a high and low of Rs440.70 and Rs408.15 respectively. So far 1,22,73,284 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs1,04,982.90cr.