Shares of Strides Pharma rose over 12 percent in the afternoon session on Tuesday after the company announced that it has entered into a joint venture with Sun Moral International, a wholly-owned subsidiary of China's Sihuan Pharmaceutical Holdings Group.
Strides Pharma shares rose as much as 12.8 percent, trading at Rs 397.95 per share intraday. At 11.55 AM, it was trading 11.64 percent higher at Rs 393.80 per share, while the Nifty was down 6.35 points, or 0.06 percent, at 11,182.85.
Both the companies will set up a JV company based in Hong Kong to be christened as Sihuan Strides HK, where SPG, one of China's leading pharmaceutical companies, will own 49 percent stake, Strides Pharma said in a statement.
The JV fast tracks Strides' entry into China, the second-largest pharmaceutical market in the world with a $137 billion market opportunity.
Strides will license four products immediately to this JV with an option to expand the portfolio subsequently and will receive a licensing fee for each product in-licensed to the JV.
"We are delighted to partner with Sihuan Pharmaceutical with the initial set of products having a significant market opportunity in China. We look forward to strengthening the partnership in the near term to build a strong pharmaceutical franchise in China," Strides Group CEO and managing director Arun Kumar said.
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First Published: IST