SPARC, Sun Pharma climb on licensing agreement

NEW DELHI: Shares of Sun Pharma Advanced Research Company ( SPARC) closed 1.54 per cent higher on Monday after the company announced a licensing arrangement for ELEPSIA XRTM drug to a wholly-owned subsidiary of Sun Pharma for the US market.

SPARC will receive an up-front payment of $10 million from Sun Pharma, the company said.

The deal will make the company eligible for certain additional milestone payments and defined royalties linked to any future sales of ELEPSIA XRTM, SPARC said.

Stock of parent Sun Pharma closed 0.81 per cent higher at Rs 776.65.

“The in-licensing of ELEPSIA XRTM will facilitate Sun Pharma’s anticipated entry into the proprietary CNS segment in the US. This is a part of Sun Pharma’s strategy, to strengthen its presence in the US specialty segment through its newly created Sun Neurosciences business unit. We believe that SPARC’s Wrap MatrixTM technology will help in differentiating ELEPSIA XRTM amongst other competing products,” said Kirti Ganorkar, Senior Vice President for business development at Sun Pharma.