• The pharmaceutical company has entered into an agreement with China Medical System Holdings to manufacture and manage 7 generic products in Mainland China.
   
• The company shares rose to 4.69% to hit a day high of Rs. 434.20 on the BSE.

Mumbai based Sun Pharma has reportedly inked a licensed collaboration with China Medical System Holdings for the sales of seven generic pharmaceutical products in Mainland China. Apparently, the Sun Pharma share price elevated as much as 4.7% to hit high of Rs. 434.20 compared with its closing price of Rs.414.70 on Friday on the National Stock Exchange.

As per trusted reports, one of the subsidiaries of the company initiated an agreement with CMS Holdings to manufacture and promote and manage 7 generic products in Mainland China.

For the uninitiated, Hong Kong based China Medical System Holdings is an investment holding company primarily engaged in the manufacturing, advertising and promotion of the pharmaceutical products.

As per sources with the knowledge on the matter, the company’s collaboration with CMS would now comprise over 8 generic products. The overall addressable market size for the products has been estimated to be about USD 1 billion in Mainland China. The preliminary terms of the agreement have been kept for 20 years from the first commercial sale of the products in Mainland China and are expected to be extended for additional 3 years' according to the mutually agreed contract between the two parties.

Speaking on the collaboration, Dilip Shanghvi, the managing director at Sun Pharma cited that the collaboration offers the company an entry into the Chinese pharmaceutical market. With over more than 65% penetration of generics in the nation, China characterizes a significant opportunity for generic pharmaceutical companies, Shanghvi added.

Apparently, the Sun Pharma shares closed 2.66% higher at Rs. 425.80 outdoing the Sensex which rose over 0.14%.

Post the announcement, the shares of Sun Pharma rose to 4.69% up to Rs. 434.20 on BSE.

Source credit: https://www.ndtv.com/business/sun-pharma-share-price-sun-pharma-surges-on-agreement-to-sell-generic-products-in-mainland-china-2087037