Sun Pharma Advanced Research Company jumped 5.32% to Rs 368.25 at 11:00 IST on BSE after the company licensed ELEPSIA XR (Levetiracetam ER Tablets) to Sun Pharmaceutical Industries.
Separate announcements were made by Sun Pharmaceutical Industries and Sun Pharma Advanced Research Company before market hours today, 18 July 2016.
Shares of Sun Pharmaceutical Industries rose 0.82% to Rs 776.70.
Meanwhile, the BSE Sensex was up 158.77 points, or 0.57%, to 27995.27.
On BSE, so far 42,517 shares were traded in the counter of Sun Pharma Advanced Research Company (SPARC), compared with an average volume of 91,937 shares in the past one quarter. The stock hit a high of Rs 374.90 and a low of Rs 359.80 so far during the day. The stock hit a 52-week high of Rs 446.84 on 17 July 2015. The stock hit a 52-week low of Rs 243.43 on 25 February 2016. The stock had outperformed the market over the past one month till 15 July 2016, rising 23.01% compared with 4.15% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 20.28% as against Sensex’s 8.62% rise.
The mid-cap company has an equity capital of Rs 24.69 crore. Face value per share is Re 1.
Sun Pharma Advanced Research Company (SPARC) and Sun Pharmaceutical Industries announced a licensing arrangement for SPARC’s ELEPSIA XR (Levetiracetam Extended Release tablets). As per the agreement, SPARC will license ELEPSIA XR (Levetiracetam Extended Release tablets) to a wholly-owned subsidiary of Sun Pharma for the US market. SPARC will receive an up-front payment of $10 million from Sun Pharma. It is also eligible for certain additional milestone payments and defined royalties linked to any future sales of ELEPSIA XR.
ELEPSIA XR was approved by the United States Food & Drug Administration (USFDA) in March 2015. However, in September 2015, SPARC received a complete response letter (CRL) from the USFDA rescinding its earlier approval, citing that the compliance status of the manufacturing facility viz., Halol site of Sun Pharma was not acceptable on the date of approval. Sun Pharma has undertaken a detailed remediation at Halol for restoring cGMP compliance status for the site.
Levetiracetam products currently approved by FDA and available in the US market are generally indicated for adjunctive therapy in the treatment of partial onset seizures in patients 12 years of age and older with epilepsy. As per IMS MAT December 2015, 9 million prescriptions were dispensed for Levetiracetam making it one of the most widely prescribed treatments for epilepsy in the US.
Anil Raghavan, CEO, SPARC said that the licensing of ELEPSIA XR is a step ahead in company’s desire to make it available for thousands of epilepsy patients taking multiple pills of Levetiracetam every day. ELEPSIA XR is designed as a novel once-a-day formulation of Levetiracetam using SPARC’s proprietary Wrap Matrix technology. It is designed to reduce pill burden and help improve convenience and compliance in these patients. If and when the USFDA reapproves the ELEPSIA XR application, Sun Pharma’s significant US presence will help SPARC in commercializing this important product for patients in the US market.
Commenting on the in-licensing, Kirti Ganorkar, Senior Vice President, Business Development, Sun Pharma said that the in-licensing of ELEPSIA XR will facilitate Sun Pharma’s anticipated entry into the proprietary CNS segment in the US. This is a part of Sun Pharma’s strategy, to strengthen its presence in the US specialty segment through its newly created Sun Neurosciences business unit.
SPARC reported net loss of Rs 9.58 crore in Q4 March 2016 compared with net loss of Rs 9.40 crore in Q4 March 2015. Net sales dropped 3.6% to Rs 41.17 crore in Q4 March 2016 over Q4 March 2015.
SPARC is an international pharmaceutical company engaged in research and development of drugs and delivery systems.