Shares of Sun Pharma Advanced Research Company (SPARC) surged 8 per cent as the company and parent Sun Pharma entered into a licensing deal for Elepsia tablets in the US for upfront payment of USD 10 million.
Elepsia tablets are used in the treatment of epilepsy.
The stock jumped 7.23 per cent to Rs 374.95 on BSE.
At NSE, it surged 7.67 per cent to Rs 375.80.
Sun Pharma's scrip too rose by 1.36 per cent to Rs 780.90 on BSE.
"As per the agreement, SPARC will licence Elepsia XRTM (Levetiracetam Extended Release tablets) to a wholly-owned subsidiary of Sun Pharma for the US market. SPARC will receive an up-front payment of USD 10 million from Sun Pharma," SPARC said in a BSE filing.
It is also eligible for certain additional milestone payments and defined royalties linked to any future sales of Elepsia XRTM, the company added.
"The licensing of Elepsia XRTM is a step ahead in our desire to make it available for thousands of epilepsy patients taking multiple pills of Levetiracetam every day... If and when the USFDA reapproves the epilepsy XRTM application, Sun Pharma's significant US presence will help SPARC in commercialising this important product for patients in the US market," SPARC CEO Anil Raghavan said.
