Shilpa Medicare ties up with Dr Reddy's to manufacture Sputnik V vaccine; share price up

Drug firm Shilpa Medicare on Monday said its arm has entered into a definitive agreement with Dr Reddy's Laboratories for manufacturing of Russian COVID-19 vaccine Sputnik V.

"The company, via its wholly owned subsidiary Shilpa Biologicals Pvt Ltd (SBPL), has entered into a three-year definitive agreement with Dr Reddy's Laboratories for production-supply of the Sputnik V vaccine from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka," Shilpa Medicare said in a regulatory filing.

The targeted production of the dual vector Sputnik V for the first 12 months is 50 million doses (50 million of component 1 and 50 million of component 2), from the date of start of commercial production, the company added.

Shilpa Medicare said Dr Reddy's will facilitate the transfer of the sputnik technology to SBPL.

Under the agreement, SBPL will be responsible for manufacture of the vaccine, while Dr Reddy's is responsible for distribution/marketing of the vaccine in its marketing territories.

Shilpa Medicare said the companies are also exploring the option to manufacture Sputnik Light, a single dose version of the vaccine in the near future.

Reddy's Laboratories on Friday soft-launched imported COVID-19 vaccine Sputnik V, with Deepak Sapra, a senior executive of the drug-maker, taking the first shot.

The vaccine is priced at Rs 948, with five percent GST per dose (retail price of Rs 995.40).

The first consignment of imported doses of the Sputnik V vaccine from Russian Direct Investment Fund (RDIF) landed in India on May 1, and received regulatory clearance from the Central Drugs Laboratory.

The share price went up 42.80 or 9.40 percent at Rs 498.35 apiece.