Shares of Sun Pharma Advanced Research Company (SPARC) rallied as much as 7.24 per cent after it informed bourses that the company and Sun Pharmaceutical have entered into a licensing arrangement for SPARC’s ELEPSIA XR (Levetiracetam Extended Release tablets).
At 12.15 pm, shares of SPARC were trading 4.55 per cent up at Rs 365.55. The scrip opened at Rs 359.80 and has touched a high and low of Rs 374.95 and Rs 359.80, respectively, in trade so far.
Later, the scrip closed 1.54 per cent up at Rs 355.05.
As per the agreement, SPARC will licence ELEPSIA XR (Levetiracetam Extended Release tablets) to a wholly-owned subsidiary of Sun Pharma for the US market. Sun Pharma Advanced Research Company will get an up-front payment of $10 million from Sun Pharmaceutical. It is also eligible for certain additional milestone payments and defined royalties linked to any future sales of ELEPSIA XR. SPARC is an international pharmaceutical company engaged in research and development of drugs and delivery systems.
In a BSE filing, SPARC said, “ELEPSIA XR was approved by the USFDA in March 2015. However, in September 2015, SPARC received a complete response letter (CRL) from the USFDA rescinding its earlier approval, citing that the compliance status of the manufacturing facility viz., Halol site of Sun Pharma was not acceptable on the date of approval. Sun Pharma has undertaken a detailed remediation at Halol for restoring cGMP compliance status for the site.”
Sun Pharmaceutical Industries shares settled 0.81 per cent up at Rs 776.65. Sensex closed 89.84 points down at 27,746.