SPARC jumps on signing licensing deal with CMS

Sun Pharma Advanced Research Company Limited (SPARC) has announced the grant of exclusive licenses to a subsidiary of China Medical System Holdings Limited (CMS) to develop and commercialize multiple products in Mainland China, Hong Kong, Macao, and Taiwan.

The licensing deal with CMS covers following innovative products:

• XelprosTM (Latanoprost BAK-free) ophthalmic emulsion,

• ElepsiaTM (Levetiracetam) XR 1000mg/1500mg tablets, along with generic strengths of Levetiracetam XR, 500mg and 750mg,

• TaclantisTM / PICS (Paclitaxel Injection Concentrate for Suspension),

• PDP-716 (Brimonidine once-a-day) eye drops, and

• SDN-037 eye drops.

The initial term of the agreement shall be 20 years from the date of first commercial sale of each product in the territory and may be further extended as per mutual agreement between both the parties.

As per the agreement, SPARC is eligible to receive upfront payment, milestone payments, and royalty on net sales of products in territories.

SPARC’s management has stated that the collaboration is a significant milestone as this is the first licensing deal by SPARC for China. China is the third largest pharmaceutical market in the world and holds a significant commercial opportunity for SPARC.

CMS is a well-established, innovation-driven specialty pharmaceutical company, with a focus on sales and marketing in China. The company is committed to offering competitive products and services to meet China's unmet medical needs with a strong and professional sales and marketing network and a promotion platform that covers the Greater China market.

Reacting to this, the stock of SPARC opened gap up at Rs. 151.40. In the early morning session, it surged 11.2 per cent from its previous close of Rs. 142.60.