Shares of Jubilant Life Sciences on Wednesday rose 5 per cent after the company said it has entered into a pact with Gilead Sciences for an investigational drug, remdesivir which is a potential therapy for COVID-19.
The scrip rallied 4.99 per cent to Rs 429.95 on the BSE, and 4.99 per cent to Rs 428.55 on the NSE.
The non-exclusive agreement, signed between Jubilant Life Sciences’ subsidiary Jubilant Generics Ltd and Gilead, will grant the former the right to register, manufacture and sell the latter’s investigational drug, remdesivir – a potential therapy for COVID-19 – in 127 countries including India, the company said in a regulatory filing.
Under the pact, Jubilant will have the right to receive technology transfer of Gilead manufacturing process to scale up production to enable expedited access of the medicine to COVID-19 patients upon approvals by regulatory authorities in the respective countries.
This includes nearly all low-income and lower-middle-income countries, as well as several upper-middle and high-income countries that face significant obstacles to healthcare access, it added.
Commenting on the partnership, Jubilant Life Sciences Chairman Shyam S Bhartia and Co-Chairman and Managing Director Hari S Bhartia said that based on initial data, remdesivir shows promise to be a potential therapy for COVID-19, a pandemic creating unprecedented health and economic crisis globally.