Strides Arcolab strides ahead on JV news

DALAL STREET SPIKES

Strides Arcolab climbed nearly 5 per cent, in the intra-day trades, to Rs 196 on news that its US subsidiary Strides Inc. has signed a development agreement with the US-based Able Laboratories for a speciality prescription generic drug.

However the stock was subdued towards the need of the day, closing just 1.6 per cent higher at Rs 190.40, compared with its previous close of Rs 187.05. The counter witnessed impressive volumes of more 1.34 lakh shares on the BSE on Friday.

The current agreement allows Strides to develop the drug exclusively for Able Laboratories.

Currently, Strides has a total of 12 manufacturing plants world-wide including a USFDA approved plant in Somerset, New Jersey, where the new drug will be developed.

Strides reported a robust September quarter results. The company's net profit rose to Rs 7.63 crore, compared with Rs 0.15 crore in the same quarter last year. Sales grew 7.5 per cent to Rs 69.18 crore from Rs 64.35 crore during the same period. Strides Arcolab is into the generics, OTC and nutraceuticals arena.