Zydus Cadila surges on drug discovery pact with Eli Lilly

MUMBAI: Shares of Zydus Cadila got a booster shot after the pharmaceutical company signed a new drug discovery and development agreement with Eli Lilly and Company.

This alliance seeks to improve productivity in drug discovery and development by synergizing the strengths of both companies, Zydus Cadila said in a statement to the stock exchanges. The collaborative research programme is expected to continue for upto 6 years.

Zydus will work to discover and develop potential molecules against a novel target primarily in cardiovascular research. Lilly will have an option to license any resulting molecules at different stages.

Zydus is expected to receive upto $ 300 million and royalties on sales on the successful launch of any compounds derived from the research programme.

At 11:45 am, shares of Cadilla Healthcare surged 13.59 per cent to Rs 291.80 on the BSE.