Shares of Strides Pharma Science rallied 13 per cent in intra-day trade on the Bombay Stock Exchange (BSE) on Tuesday after the drug maker announced a joint venture (JV) with Sihuan Pharmaceutical for entering the Chinese market.
Following the announcement, Strides share price gained as much as 12.92 per cent to touch an intra-day high of Rs 397.90 apiece on the BSE after making a positive start at Rs 365. By the time of reporting, the scrip was quoting at Rs 365, up 6.54 per cent.
The stock witnessed a huge surge in volume trade as 7.58 lakh shares changed hands over the counter as compared to their 2-week average trade volume of 1 lakh shares.
On the National Stock Exchange, Strides Pharma share was trading at Rs 371.70 apiece, up 5.37 per cent as compared to previous closing price of Rs 352.75. The stock opened higher at Rs 365 and touched an intra-day high of Rs 397.95 during the day's trade.
In a filing to the exchange, Strides Pharma on Monday said it that its step down subsidiary Strides Pharma Global Pte, Singapore (SPG) has entered into a JV with Sun Moral International (HK) Limited, a wholly-owned subsidiary of Sihuan, one of the leading pharmaceutical companies in China's prescription drug market.
Both the companies will set up a new JV company based in Hong Kong to be christened as Sihuan Strides HK Ltd. SPG will own a 49% stake in this company.
The company said that it will supply these products to the JV from its manufacturing facilities at India and Singapore. The JV will explore setting up local manufacturing in China in due course, it added.
In a separate development, Strides Pharma has posted a net profit at Rs 3.7 crore in June quarter as againt a net loss of Rs 4.3 crore in the same period last year. Revenue of the company surged 45 per cent at Rs 685.8 crore versus Rs 472.7 crore in the same quarter last fiscal.
Edited by Chitranjan Kumar