Jubilant soars on drug discovery pact

Written by Agencies | Mumbai | Updated: Jun 29 2011, 16:24pm hrs
Pharma firm Jubilant Life Sciences soared over 11 per cent on the bourses on Tuesday after its US-based arm inked drug discovery pact with Belgium-based Janssen Pharmaceutica NV.

It zoomed 11.05 per cent to Rs 197.90 at BSE. Intra-day, the stock spurted 14.28 per cent to touch a month high of Rs 203.65.

Investors also flocked Jubilant's counter at NSE where the stock jumped 9.69 per cent to end at Rs 196.90.

Over 20 lakh shares of the company changed hands on the bourses during the day.

As per the deal, Janssen will transfer ongoing efforts on selected drug discovery targets to Jubilant. The pact will be initially for three years and focus on multiple targets in the area of neuroscience.

It said, "Jubilant shall then carry out the research services and deliver pre-clinical candidates to Janssen for possible further development and commercialisation."

In addition to research funding, the company may also be eligible to receive payments at different intervals and royalties, should Janssen successfully develop and commercialise the candidates.

The agreement was signed between Jubilant's US arm Jubilant Discovery Services Inc and Janssen Pharmaceutica.

Meanwhile, the BSE 30-stock Sensex finished the day higher by 80.04 points at 18,492.45.