Jubilant Life Sciences Unit Signs US Deal, Shares Surge Over 10%

Jubilant Life Sciences shares gained more than 10 per cent amid high volumes to hit an intraday high of Rs 704 on Wednesday, after the company said its subsidiary signed a long-term radio-pharma business deal in the US.

In a filing to the Bombay Stock Exchange or BSE, Jubilant Life Sciences said its "wholly-owned subsidiary Jubilant Pharma, through one of its units, Jubilant DraxImage Montreal Canada (JDI), has signed long-term contracts with distribution networks in the US for supply of products used for diagnostic and therapeutic procedures for thyroid, myocardial perfusion, lungs, kidney and bone scans to be supplied by JDI over 39 months effective January 2017".

The deal is expected to boost Jubilant Life Sciences' profitability going forward, analysts said.

On the contract, Shyam S Bhartia, chairman, and Hari S Bhartia, co-chairman and managing director, Jubilant Life Sciences Limited, said: "We are delighted to announce signing of long term contracts by our Jubilant Draximage business where we are the leader in some of the key products in the US market."

"These contracts provide visibility on our future revenues with the differentiated and niche products in our Specialty Pharma business and will strengthen the company for its growth, going forward."

At day's high, Jubilant Life Sciences shares recorded gains of more than 13 per cent in two trading sessions.

Jubilant Life shares saw a more than three-and-a-half-times surge in volumes.

At 10:44 a.m., over 3.3 lakh shares in Jubilant Life Sciences had changed hands, compared to a two-week average of 94,000, Shares were trading 8.07 per cent higher at Rs 689.35 apiece on the BSE, whose benchmark Sensex was up a mild 0.07 per cent.

Jubilant Life Sciences Limited is an integrated global pharmaceutical and life sciences company engaged in pharmaceuticals, life science ingredients and drug discovery solutions.