Strides Arcolab signed an in-licensing deal with GSK Pharma

Strides Arcolab gained 17.51% to Rs 172.80 at 14:06 IST on BSE after the company said its joint venture firm Onco Therapies has signed an in-licensing deal with multinational corporation GlaxoSmithKline.
The company made this announcement during trading hours today, 23 July 2008.
The stock hit a high of Rs 179.80 and a low of Rs 144 so far during the day. The stock had a 52-week high of Rs 328 on 12 December 2007 and a 52-week low of Rs 112 on 4 July 2008.
The company has an equity capital of Rs 40.05 crore. Face value per share is Rs 10.
The current price of Rs 172.80 discounts its Q4 March 2008 annualised EPS of Rs 60.32, by a PE multiple of 2.39.
Onco Therapies (OTL) is a joint venture (JV) firm between Strides Arcolab and Aspen Pharmacare Holdings of South Africa.
Aspen Pharmacare Holdings is engaged in manufacturing and marketing the branded and generic pharmaceutical, healthcare and nutritional products to southern Africa and selected international markets.
As per the agreement, OTL will license intellectual property and supply finished dosage form pharmaceuticals to GlaxoSmithKline (GSK). OTL will recover the intellectual property development cost from GSK in addition to sharing profits.
Strides Arcolab reported a loss of Rs 55.96 crore in Q2 June 2008 as against net profit of Rs 10.18 crore in Q2 June 2007. Net sales rose 52.8% to Rs 160.78 crore in Q2 June 2008 over Q2 June 2007. The results were announced after trading hours yesterday, 22 July 2008.
In June 2008, the company received abbreviated new drug application approval for its Famotidine injection in multiple strengths.
On 26 May 2008, Strides Arcolab received abbreviated new drug application approval for Rifampicin injection USP 600 milligram/vial.
The company manufactures ethical pharmaceutical products, over the counter (OTC) products and nutraceuticals. It performs its activities through two segments, pharma and contract research and manufacturing (CRAM).