SPARC licenses Xelpros to Sun Pharmaceutical for US market, shares up 5%

Shares of Sun Pharma Advanced Research Company (SPARC) jumped over 5 per cent in the early trade on Wednesday after the announcement that SPARC has licensed out Xelpros (Latanoprost BAK-free eye drops) to a subsidiary of Sun Pharma for the US market.

In addition to up-front payment of $3 million, SPARC will receive certain other milestone payments, both totalling to $16 million from Sun Pharma. It is also eligible for certain defined royalties and additional milestone payments linked to the actual sales performance of Xelpros.

Commenting on the in-licensing, Kirti Ganorkar, senior vice president, business development, Sun Pharma in a release, said, "The in-licensing of Xelpros will facilitate Sun Pharma's entry into the branded Ophthalmology segment in the US. This is a part of Sun Pharma's strategy to strengthen its presence in the US specialty segment."

Share price of Sun Pharma Advanced Research Company closed at Rs 417.65, up 2.83 per cent against its previous close.