Dr Reddy's Lab shares jump over 4% after Russia COVID-19 vaccine Sputnik V agreement
Shares of Dr Reddy's Laboratories gained over 4 per cent on Wednesday after the company and Russia's sovereign wealth fund RDIF agreed to supply 100 million (10 crore) doses of Sputnik V COVID-19 vaccine to the drug maker upon getting regulatory approval in India.
The stock jumped 4.24 per cent to close at Rs 4,631.55 on the BSE. During the day, it rose by 4.69 per cent to Rs 4,651.95.
On the NSE, it closed 4.17 per cent higher at Rs 4,442.35.
The Russian Direct Investment Fund (RDIF) and Dr Reddy's Laboratories have agreed to cooperate on clinical trials and distribution of Sputnik V vaccine in India, RDIF and Dr Reddy's said in a joint statement.
On August 11, the Sputnik V vaccine developed by the Gamaleya National Research Institute of Epidemiology and Microbiology was registered by the Ministry of Health of Russia and became the world's first registered vaccine against COVID-19 based on the human adenoviral vectors platform.
Deliveries could potentially begin in late 2020 subject to completion of successful trials and registration of the vaccine by regulatory authorities in India, the statement added.
The statement, however, did not provide any financial details of the agreement between the partners.
The Sputnik V vaccine is undergoing clinical trials for the coronavirus pandemic, it said.
"We are very pleased to partner with Dr. Reddy's in India... India is amongst most severely impacted countries from COVID-19 and we believe our human adenovirus dual vector platform will provide a safe and scientifically validated option to India in the battle against COVID 19," RDIF CEO Kirill Dmitriev said.
Dr Reddy's Laboratories Co-Chairman and MD G V Prasad said that the company is pleased to partner with RDIF to bring the vaccine to India. The Phase I and II clinical trials have shown promising results.
"We will be conducting Phase-III trials in India to ensure safety and efficacy for the Indian population and to meet the requirements of the Indian regulators. Sputnik V vaccine could provide a credible option in our fight against COVID 19 in India," he added.
