Suven Pharmaceuticals rose 2.90% to Rs 494.80 after the company and CSIR-IICT joined hands for the process technology transfer and manufacture of anti COVID drugs molnupiravir and 2-DG.
The technology transfer agreement has been signed between Suven Pharmaceuticals (SPL), CSIR-Indian Institute of Chemical Technology (IICT), Hyderabad and CSIR-National Institute of Interdisciplinary Science & Technology (NIIST), Thiruvananthapuram.
It is a related party transaction as one amongst the company's independent directors Dr S Chandrasekhar is the director of CSIR-IICT, Hyderabad.
The agreements between the parties involve a total fee of Rs 8 lakh plus taxes for the grant of the licenses on non-exclusive basis to SPL.
Molnupiravir, the antiviral drug was initially developed for the treatment of influenza and is repurposed to completely suppress the COVID virus transmission within 24 hours according to the study recently published in the journal Nature Microbiology. The drug could be a game changer in mitigation of SARS-CoV-2 virus.
The synthetic process know how for Molnupiravir was sourced from CSIR-NIIST and scale up process was successfully carried out by CSIR-IICT. The complete technology know how will be transferred and SPL in turn will manufacture and launch in the domestic market as an effective medication for COVID infected patients subject to regulatory approvals.
As per the agreement, CSIR-IICT also would provide the process know how for the manufacture of new anti COVID drug 2-DG to treat moderately and severely COVID infected patients to reduce their oxygen dependency.
Suven Pharmaceuticals is engaged in the business of contract development and manufacturing operations (CDMO).
On a consolidated basis, the company's net profit jumped 12.03% to Rs 83.11 crore on 40.26% rise in revenue from operations to Rs 259.16 crore in Q4 March 2021 over Q4 March 2020.
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