Shilpa Medicare share rose 14 per cent to hit an intraday high of Rs 764.45 on BSE today after the company announced that its wholly owned subsidiary Shilpa Biologicals Private Limited (SBPL), has entered into a 3-year definitive agreement with Dr. Reddy's Laboratories Limited (DRL) for production-supply of the Sputnik V vaccine from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka.
The stock ended 11.90 per cent higher at Rs 509.55 against the previous close of Rs 455.35 . The share has gained 42 per cent in one year and risen 13 per cent since the beginning of this year. Shilpa Medicare share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages. Market cap of the firm rose to Rs 4,154.20 crore.
The share touched a 52-week high of Rs 692.45 on August 11, 2020, and a 52-week low of Rs 317.05 on March 19, 2021. Currently, it is trading 56.54 per cent above its 52-week low and 28.33 per cent below its 52-week high.
The targeted production of the dual vector Sputnik V for the first 12 months is 50 million doses (50 million of Component 1 and 50 million of component 2), from the date of start of commercial production.
DRL has partnered with (Russian Direct Investment Fund) HV/RDIF for the clinical development of the vaccine and has distribution rights in geographies including India. DRL will facilitate the transfer of the sputnik technology to SBPL. Under the agreement, SBPL will be responsible for the manufacture of the vaccine, while DRL is responsible for the distribution/marketing of the vaccine in its marketing territories.
The company views Biologics as a strategic growth area and has made significant investments in setting up a High end, Flexible Biologics facility in Dharwad to cater to the requirements of the fast-growing biologics field, that include the adenoviral, subunit & DNA vaccines, Monoclonal antibodies & fusion proteins.
The companies are also exploring the option to manufacture Sputnik Light, a single-dose version of the vaccine in the near future.