The share price of Jubilant Life Sciences surged 5 per cent hitting upper circuit of Rs 429.95 per share on Wednesday after the company signed a deal with US-based Gilead Sciences Inc for production of Remdesivir to fight COVID-19.
Its subsidiary Jubilant Generics has entered into a non-exclusive licensing agreement with Gilead that will grant Jubilant the right to register, manufacture and sell Gilead's investigational drug Remdesivir, a potential therapy for Covid-19, in 127 countries including India.
These countries consist of nearly all low-income and lower-middle-income countries as well as several upper-middle and high-income countries that face significant obstacles to healthcare access.
"We will be monitoring the clinical trials and regulatory approvals very closely and would be ready to launch the drug shortly after the required regulatory approvals," said Chairman Shyam S Bhartia and Co-Chairman & Managing Director Hari S Bhartia.
"We also plan to produce the drug's active pharmaceutical ingredient (API) in-house helping its cost-effectiveness and consistent availability," they said in a joint statement late on Tuesday.
Under the licensing agreement, Jubilant will have the right to receive a technology transfer of the Gilead manufacturing process to scale up production to enable expedited access of the medicine to COVID-19 patients upon approvals by regulatory authorities in respective countries.
Remdesivir, an investigational antiviral therapy developed by Gilead, has received emergency use authorisation (EUA) by the US Food and Drug Administration to treat COVID-19.
( With inputs from ANI )