Strides Arcolab Gains on Launch of Generic Drug

Shares of Strides Arcolab jumped nearly 4 per cent to hit intrady high of Rs 1139.40 after the company on Friday launched generic drug Sofosbuvir in India.

 

Strides Arcolab in a statement to the Bombay Stock Exchange said that it has launched generic drug Sofosbuvir in India under the brand name 'Virso'. 

 

In September 2014, Strides entered into a licensing agreement with Gilead Sciences, Inc to bring Hepatitis C cure to 91 developing countries. The product will be available to Indian patients shortly.

 

Sofosbuvir is the first-in-class NS5B polymerase inhibitor to be launched in India for Hepatitis C treatment and represents a paradigm shift in the existing Hepatitis C management. 

 

Globally, it is estimated that 170-185 million people (about 3% of the world's population) are chronically infected with Hepatitis C virus (HCV). In India alone, it is estimated that 12-18 million patients are infected with Hepatitis C, which is several fold greater than those with HIV/AIDS.

 

The company is likely to fetch market share of 10 per cent and could translate into the revenues of $30-40 million annually.

 

Other companies like Natco Pharma, Cipla and Dr Reddy's Labs have also tied up with Gilead Sciences to market Sofosbuvir in Inidia.

 

Meanwhile, the Strides Arcolab has also got nod from Compettion Commission of India (CCI) to acquire Shasun Pharma. After acquisition, Strides Arcolab will have access to development and manufacturing services for intermediates, API and formulations to the pharmaceutical industry.

 

Strides, a Bangalore-based firm develops and manufactures IP-led niche pharmaceutical products. It has 8 manufacturing facilities presence in more than 75 countries.

 

At 10:40 a.m., the shares of Strides Arcolab were up 2.6 per cent at Rs 1,126. The stock was outperforming the benchmark indices which were trading 1 per cent higher.