Alembic Pharma firms up after associate firm outlicenses molecule to Novartis

Shares of Alembic Pharmaceuticals were up over 1% on the Bombay Stock Exchange after its associate company "M/s. Rhizen Pharmaceuticals SA" on Wednesday announced that it has entered into an exclusive, worldwide license agreement with Novartis for the development and commercialisation of Rhizen's, inhaled dual PI3K-delta gamma inhibitor and its closely related compounds for various indications.

Under the terms of agreement, Rhizen will receive an upfront payment and is eligible to receive development, regulatory and sales milestones payments. In addition Rhizen is also eligible to receive tiered royalties on annual net sales, Alembic Pharmaceuticals said in release.

The lead compound is a novel, potent, and selective dual PI3K-delta gamma inhibitor with demonstrated anti-inflammatory and immuno-modulatory activity in pre-clinical systems adn models representative of respiratory diseases, the release added.

The stock opened at Rs 680 and hit a high of Rs 688. At 10:45am, over 22,400 shares were traded on both the stock exchanges.