Divi's Laboratories added 3.09% to Rs 4397 after US-based drug major Merck announced supply agreement with US government for experimental Covid-19 drug, molnupiravir.
Merck, known as MSD outside the United States and Canada, on Wednesday announced it has entered into a procurement agreement with the United States government for molnupiravir (MK-4482).Molnupiravir is currently being evaluated in a Phase 3 clinical trial, for the treatment of non-hospitalized patients with laboratory-confirmed Covid-19 and at least one risk factor associated with poor disease outcomes. Merck is developing molnupiravir in collaboration with Ridgeback Biotherapeutics.
US government has committed to purchase approximately 1.7 million courses of molnupiravir upon issuance of emergency use authorization or approval by the U.S. Food and Drug Administration.
On 26 May 2021, Divi's Laboratories had informed that it has been selected by Merck as an authorized manufacturer for the active pharmaceutical ingredient (API) of molnupiravir. Divi's Labs has been allowed to supply the API to MSD's VL partners in India.
Shares of Divi's Laboratories have gained 3.91% in three sessions, from its recent closing low of Rs 4,231.60 on 7 June 2021.
The scrip surged 3.38% to hit the day's high at 4,409.25, which is a record high for the counter.
The stock has gained 109.92% from its 52-week low of Rs 2,094.60 hit on 2 July 2020, to currently trade at Rs 4397.
In the past three months, the stock has gained 24.29% while the benchmark Sensex has risen 1.59% during the same period.
Divis Laboratories is the leading manufacturer of APIs (Active pharmaceuticals ingredients), intermediates and registered starting materials offering high quality products with the highest level of compliance and integrity to over 95 countries.
On a consolidated basis, the company posted a 29.3% rise in net profit to Rs 502.02 crore in Q4 FY21 compared with Rs 388.23 crore in Q4 FY20. Net sales increased 28.7% YoY to Rs 1,788.19 crore in Q4 FY21.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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