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SPARC jumps after licensing out Xelpros to a subsidiary of Sun Pharma for US market

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Capital Market
Last Updated : Jun 11 2015 | 12:01 AM IST

Sun Pharma Advanced Research Company jumped 5.48% to Rs 428.40 at 10:10 IST on BSE after the company has licensed out Xelpros - Latanoprost BAK-free eye drops, to a subsidiary of Sun Pharmaceutical Industries for the US market.

Sun Pharma Advanced Research Company (SPARC) and Sun Pharmaceutical Industries, both, made announcement before market hours today, 10 June 2015.

Shares of Sun Pharmaceutical Industries rose 1.51% to Rs 825.

Meanwhile, the BSE Sensex was up 245.63 points, or 0.93%, to 26,726.88.

On BSE, so far 1.93 lakh shares were traded in SPARC's counter, compared with an average volume of 5.53 lakh shares in the past one quarter.

Shares of SPARC hit a high of Rs 438.35 and a low of Rs 422 so far during the day. The stock hit a record high of Rs 598 on 10 March 2015. The stock hit a 52-week low of Rs 153.50 on 14 July 2014.

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The stock had outperformed the market over the past one month till 9 June 2015, rising 5.75% compared with 2.3% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, declining 25.46% as against Sensex's 8.19% fall.

The large-cap pharma company has an equity capital of Rs 23.67 crore. Face value per share is Re 1.

Sun Pharma Advanced Research Company (SPARC) said that in addition to up-front payment of $3 million, SPARC will receive certain other milestone payments, both totaling to $16 million from Sun Pharmaceutical Industries. It is also eligible for certain defined royalties and additional milestone payments linked to the actual sales performance of Xelpros.

In December 2014, the United States Food & Drug Administration (USFDA) had issued a Complete Response letter (CRL) to SPARC for its New Drug Application (NDA) for Latanoprost BAK-free eye drops. This CRL has since been replied to and a response from the USFDA is awaited, SPARC said.

Sun Pharmaceutical Industries has recently appointed Jerry St. Peter as Vice President and Head, Ophthalmology for Sun Pharma's US business. Jerry has a successful commercial and general management track-record in specialty pharmaceutical companies with an extensive knowledge of the Ophthalmology market. He will lead Sun's Ophthalmic business in the US and will commercialize Xelpros.

SPARC reported net loss of Rs 9.40 crore in Q4 March 2015 compared to net loss of Rs 2.51 crore in Q4 March 2014. Total income fell 4.6% to Rs 43.13 crore in Q4 March 2015 over Q4 March 2014.

Sun Pharma Advanced Research Company (SPARC) is an international pharmaceutical company engaged in research and development of drugs and delivery systems.

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First Published: Jun 10 2015 | 9:59 AM IST

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