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Dr Reddy's Labs stock gains 3% on deal for producing COVID-19 drug Remdesivir

Dr Reddy's Labs stock gains 3% on deal for producing COVID-19 drug Remdesivir

The agreement will grant the drugmaker right to register, manufacture and sell Gilead's investigational drug, Remdesivir, a potential treatment for Covid-19 in 127 countries including India

As per the filing, the drug maker will receive technology transfer from Gilead for manufacturing of this drug As per the filing, the drug maker will receive technology transfer from Gilead for manufacturing of this drug

Share price of Dr Reddy's Laboratories climbed 3% intraday in Monday's early session after the drugmaker entered into a non-exclusive licensing agreement with Gilead Sciences to produce COVID-19 drug Remdesivir.

The agreement will grant the drugmaker right to register, manufacture and sell Gilead's investigational drug, Remdesivir, a potential treatment for Covid-19 in 127 countries including India.

Following the deal, Dr Reddy's stock price touched an intraday high of Rs 4,127.2, rising 3.01% on BSE against the last closing of Rs 4,006.

Dr Reddy's stock is 4.76% short of the 52-week high of Rs 4,189.35. The stock trades higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.

Dr Reddy's stock price has risen 0.81% in one week, 7.1% in one month and 38.99% since the beginning of the year. Market capitalisation of DR Reddy's stood at Rs 68,075 crore by today's closing bell.

As per the filing, the drug maker will receive technology transfer from Gilead for manufacturing of this drug.

"Dr Reddy's would need to do the manufacturing scale up and obtain regulatory approval for marketing of this drug in respective countries," the filing added later.

Remdesivir, an investigational antiviral therapy developed by Gilead, received Emergency Use Authorization (EUA) by the US Food and Drug Administration (USFDA) to treat Covid-19.

However, Dr Reddy's share price erased early gains and closed 0.19% lower at Rs 3,999 on BSE.

In another update, the company said it has launched Colchicine tablets in the US market.