Sun Pharma to make upfront payment worth Rs 2.40 bn to CSIR-IICT Hyderabad for new drug compounds

MUMBAI: In one of the rare partnerships between the industry and academic institutions, Sun Pharma, India's largest drug maker said that it has entered into a global licensing agreement with Hyderabad based CSIR Indian Institute of Chemical Technology, for patents related to certain therapy areas with multiple indications. Sun has made an upfront payment of Rs 2.40 billion to the institute and as per the terms of the agreement CSIR, Hyderabad will also receive royalties on net sales from the commercialization of these products.

This collaboration with CSIR-IICT for developing new drugs is part of our broader strategy for enhancing our global specialty pipeline. CSIR-IICT is well-known for its high quality research and we are proud to be associated with them. We are making earnest efforts to bring innovations from Indian research institutes to the market to address the unmet needs of patients globally. Our collaboration with CSIR-IICT is a step in this direction.” said Dilip Shanghvi, Managing Director, Sun Pharma said.“

Sun pharma said that this agreement will facilitate addition of pre-clinical candidates to Sun Pharma’s global specialty pipeline. For the quarter ending June 2019, Sun Pharma has reduced its R&D spend. Its R&D investments for Q12020 was Rs. 422 crores compared to Rs 500 crores for Q1FY19. Shares of Sun Pharma on Wednesday was trading at Rs 415 down by 5%.