Strides Arcolab rose 1.43% to Rs 756.40 at 12:07 IST on BSE after the company said it has entered into an in-licensing agreement with Gilead Sciences, Inc. to promote access to generic versions of Gilead's HIV medicine in developing countries.
The company made this announcement during trading hours today, 6 August 2012.
Meanwhile, the BSE Sensex was up 218.26 points or 1.27% to 17,416.19.
On BSE, 11,000 shares were traded in the counter as against average daily volume of 56,020 shares in the past one quarter.
The stock hit a high of Rs 760.80 and a low of Rs 747 so far during the day. The stock had hit a record high of Rs 794 on 18 July 2012. The stock had hit a 52-week low of Rs 276.25 on 22 August 2011.
The stock had outperformed the market over the past one month till 3 August 2012, rising 1.77% compared with the Sensex's 1.31% fall. The scrip had also outperformed the market in past one quarter, jumping 8.33% as against Sensex's 0.27% rise.
The mid-cap pharma firm has an equity capital of Rs 58.70 crore. Face value per share is Rs 10.
Strides Arcolab said it has entered into an in-licensing agreement to collaborate with Gilead Sciences, Inc. to promote access to high-quality, low-cost generic versions of Gilead's HIV medicine emtricitabine in developing countries - including fixed-dose combinations of emtricitabine co-formulated with other Gilead HIV medicines. Under the new agreements, Gilead will provide a technology transfer for the manufacture of emtricitabine, together with funding to assist with investment in process improvements to reduce overall manufacturing costs.
The new agreement will enable Strides to produce high volumes of FTC/TDF & FTC/TDF/EFV based therapies, thereby establishing sustainable price parity to these alternative regimens, Strides said in a statement.
Commenting on the development, Mr. Arun Kumar, MD & Group Vice-Chairman, Strides Arcolab said, "We are pleased to associate with Gilead on this initiative that will provide access of high quality essential anti-retrovirals in the developing markets. This partnership will re-enforce our commitment to provide affordable drugs in the field of HIV/AIDS, Tuberculosis and Malaria to the low and middle income countries".
Emtricitabine is marketed by Gilead under the brand name Emtriva, and fixed-dose combination of emtricitabine and tenofovir disoproxil fumarate is made available under the brand name Truvada. Emtricitabine is also an essential component of the Quad, an investigational treatment which combines four Gilead medicines in a once-daily, single tablet regimen for the treatment of HIV, Strides said in a statement.
Strides Arcolab's consolidated net profit rose 31.3% to Rs 90.48 crore on 12.6% decline in net sales to Rs 508.29 crore in Q2 June 2012 over Q2 June 2011.
Strides Arcolab is a global pharmaceutical company headquartered in Bangalore. The company develops a wide range of IP-led niche pharmaceutical products with an emphasis on sterile injectables. It has 14 manufacturing facilities across 6 countries with presence in more than 75 countries in developed and emerging markets.
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