Sun Pharma signs pact with Merck; stock gains

MUMBAI: Shares of Sun Pharmaceuticals moved higher in a weak market after the company announced an exclusive worldwide licensing agreement with Merck.

Under terms of the agreement, Sun Pharma will acquire worldwide rights to tildrakizumab for use in all human indications from Merck in exchange for an upfront payment of US $80 million.

Tildrakizumab is currently being evaluated in Phase 3 registration trials for the treatment of chronic plaque psoriasis, a skin ailment.

Merck will continue all clinical development and regulatory activities, which will be funded by Sun Pharma.

Upon product approval, Sun Pharma will be responsible for regulatory activities, including subsequent submissions, pharmacovigilance, post approval studies, manufacturing and commercialization of the approved product.

At 09:45 a.m.; the stock was at Rs 810, up 2.23 per cent, on the BSE. It touched a high of Rs 812.10 and a low of Rs 800.50 in trade today.