The company entered into a three-year agreement with Dr Reddy’s for the production of Sputnik V vaccine for Covid-19. The targeted production of the dual vector Sputnik V for the first 12 months is 50 million doses from the date of start of commercial production.
Market experts believe Shilpa Medicare has a capacity for vaccines since it has manufacturing facilities for injectables and biosimilars.
“The innovation-led engine of Shilpa Medicare is firing on all cylinders. The vaccine deal is going to be earnings accretive,” said Manish Bhandari, founder of Vallum Capital, a Mumbai-based investment manager. “It is a good deal for the company.”
The stock has rallied 35 per cent in the last month. Shares of other pharma companies, which are involved in the treatment of Covid-19, have seen investor interest of late.
