Shares of Sun Pharmaceutical Industries and AstraZeneca Pharma India advanced 5% and 2%, respectively, on Wednesday after the two pharmaceutical firms entered into a licensing agreement for distributing Sun Pharma's novel ready-to-use (RTU) infusion oncology products (cancer treatment drugs) in China.
AstraZeneca Pharma will sell Sun Pharma's cancer treatment drugs in China."The agreement will help to bring cost-effective and quality drugs to patients in China," the regulatory filing said.
Post the announcement, shares of Sun Pharma rose 5.37% to day's high of Rs 453on the BSE. Similarly, the AstraZeneca stock rose 2.26% hit an intraday high of Rs 2,631.6 on the BSE.
Sun Pharma Industries' stock price currently trades higher than 5, 20, 50, 100 and 200-day moving averages. As per market depth data, there is 61% selling against 39% buying on the stock value today. A total of 6 lakh and 105 lakh shares were trading on on BSE and NSE, both above the 5, 10 and 30-day average volume traded.
AstraZeneca India saw 849 and 8,641 shares trading on the BSE and NSE counters, respectively. There was 52% buying against 48% selling on the stock value.
Year-to-date, Sun Pharma and AstraZeneca shares have gained 1.7% and 76%, respectively. Meanwhile, the Nifty Pharma index rose nearly 2% early morning but later capped gains to trade 0.60% higher.
According to a regulatory filing submitted to Indian stock exchanges, Sun Pharma will be responsible for the development, regulatory filings and manufacturing of the drugs covered in the deal, while AstraZeneca will exclusively promote and distribute the products in China.
While the financial terms of the agreement are confidential, the initial tenure of the agreement is 10 years from the first commercial sale of the said products in China, the filing added.
By Rupa Burman Roy