Shilpa Medicare jumps 12% after inking vaccine deal with DRL

NEW DELHI: Shares of Shilpa Medicare jumped as much as 13 per cent during the early trade on Monday after the company inked a pact with Dr Reddy's to manufacture Sputnik V vaccine.

In Monday's session, the smallcap pharma counter closed 11.90 per cent higher at Rs 509.55 on BSE.

The company has entered into a three-year agreement with Dr Reddy's Laboratories Limited (DRL) for the production of Sputnik V vaccine for coronavirus from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka.


"The company, via its wholly owned subsidiary Shilpa Biologicals Pvt Ltd (SBPL), has entered into a three year definitive agreement with Dr Reddy's Laboratories for production-supply of the Sputnik V vaccine," Shilpa Medicare said in a regulatory filing.

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, the company added.

Shilpa Medicare said Dr Reddy's will facilitate the transfer of the sputnik technology to SBPL. Shilpa Medicare said the companies are also exploring the option to manufacture Sputnik Light, a single dose version of the vaccine in the near future.

The vaccine is priced at Rs 948, with five per cent GST per dose (retail price of Rs 995.40). Only three vaccines have so far been approved to be sold in India -- Covaxin, Covishield and Sputnik V.