SMS Pharmaceuticals jumps 4.31 per cent; heres why!
SMS Pharma has received a non-exclusive license through the Medicines Patent Pool (MPP) to manufacture molnupiravir. Molnupiravir is the first oral antiviral medicine available for COVID-19 therapy.
On Thursday, shares of SMS Pharmaceuticals zoomed ~10 per cent during intra-day trade to record a high of Rs 145.25 on BSE. The scrip closed at Rs 136.75, up by 4.31 per cent. Let us understand what caused the stock to soar high like an eagle, despite a bearish trend in broader equity markets.
SMS Pharmaceuticals has informed the exchange that it has received a non-exclusive license through the Medicines Patent Pool (MPP) to manufacture molnupiravir. MSD, a trade name of Merck & Co., Inc (Kenilworth, NJ, USA), has entered into an agreement to license this pill for wider distribution with patent group.
Under the terms of the agreement, MPP, through the license granted by MSD, will be permitted to further license non- exclusive sublicences to manufacturers and diversify the manufacturing base for the supply of molnupiravir to countries covered by the MPP licence, subject to local regulatory authorization.
Molnupiravir is the first oral, direct-acting antiviral shown to be highly effective at reducing nasopharyngeal SARS-CoV-2 infectious virus and viral RNA and also has a favourable safety and tolerability profile. Molnupiravir is the first oral antiviral medicine available for COVID-19 therapy.
To quote P. Vamsi Krishna, Executive Director, SMS Pharmaceuticals Limited, from a press release filed with the exchange, “This is an important milestone and an external validation to the company's ability to provide frugal, world class products while maintaining the quality."
SMS Pharma is a global player in API and intermediates manufacturing having a strong research and manufacturing team supported by state-of-the-art facilities. The company has capabilities in wide range of APIs / intermediates and has handled varied process reactions and reactor volumes up to 2,000 KL. The company undertakes contract manufacturing of API, intermediates (advanced and basic) offering a competitive advantage to its clients especially in late stage lifecycle of products.