The share price of Suven Pharmaceuticals Ltd (SPL) rallied over six percent in early trade on Friday after the company entered into a Memorandum of Understanding (MoU) with CSIR-Indian Institute of Chemical Technology, Hyderabad (CSIR-IICT) and CSIR-National Institute of Interdisciplinary Science & Technology, Thiruvananthapuram (NIIST) for the process technology transfer and manufacture of anti-COVID drugs Molnupiravir and 2-DG.
“It is a related party transaction as one of our Independent Directors Dr. S Chandrasekhar is the Director of CSIR-IICT, Hyderabad. The agreements between the parties involve a total fee of Rs eight lakh plus taxes for the grant of the licenses on a non-exclusive basis to SPL,” the company stated in a regulatory filing.
Molnupiravir, an antiviral drug, was initially developed for the treatment of influenza. It is repurposed to completely suppress the COVID virus transmission within 24 hours, according to a recent study published in the journal Nature Microbiology.
The synthetic process know-how for Molnupiravir was sourced from CSIR-NIIST and the scale-up process was successfully carried out by CSIR-IICT.
The complete technology know-how will be transferred and Suven Pharmaceuticals, in turn, will manufacture and launch the drug in the domestic market as an effective medication for COVID infected patients subject to regulatory approvals, the company said.
As per the agreement, CSIR IICT would also provide the process know-how for the manufacture of new anti-COVID drug 2-DG to treat moderately and severely infected COVID patients and help reduce their oxygen dependency.
At 12:10 pm, the shares of Suven Pharmaceuticals were trading 1.95 percent higher at Rs 490.25 apiece on the BSE.