Sputnik pact with DRL sends Shilpa Medicare to 7-month high

Mumbai: Shares of Shilpa Medicare rose to the highest in seven months on Monday after the company inked a vaccine deal with Dr Reddy’s Laboratories (DRL). The stock ended up 12 per cent at Rs 509.55 after touching a high of Rs 519.80 during the day.

The company entered into a three-year agreement with Dr Reddy’s for the production of Sputnik V vaccine for Covid-19. The targeted production of the dual vector Sputnik V for the first 12 months is 50 million doses from the date of start of commercial production.

Market experts believe Shilpa Medicare has a capacity for vaccines since it has manufacturing facilities for injectables and biosimilars.


“The innovation-led engine of Shilpa Medicare is firing on all cylinders. The vaccine deal is going to be earnings accretive,” said Manish Bhandari, founder of Vallum Capital, a Mumbai-based investment manager. “It is a good deal for the company.”

The stock has rallied 35 per cent in the last month. Shares of other pharma companies, which are involved in the treatment of Covid-19, have seen investor interest of late.