Strides Arcolab rises on entering into an agreement to collaborate with Gilead Sciences

Strides Arcolab scrip is currently trading at Rs. 755.00, up by 9.30 points or 1.25% from its previous closing of Rs. 745.70 on the BSE.

The scrip opened at Rs. 750.00 and has touched a high and low of Rs. 760.80 and Rs. 747.00 respectively. So far 14,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 794.00 on 18-Jul-2012 and a 52 week low of Rs. 276.25 on 22-Aug-2011.

Last one week high and low of the scrip stood at Rs. 760.80 and Rs. 695.25 respectively. The current market cap of the company is Rs. 4,424 crore.

The promoters holding in the company stood at 28.27% while Institutions and Non-Institutions held 54.03% and 17.70% respectively.

Strides Arcolab has entered into an in-licensing agreement to collaborate with Gilead Sciences, Inc. to promote access to high-quality, low-cost generic versions of Gilead's HIV medicine emtricitabine (FTC) in developing countries - including fixed-dose combinations of emtricitabine co-formulated with other Gilead HIV medicines. Under the new agreements Gilead will provide a technology transfer for the manufacture of emtricitabine, together with funding to assist with investment in process improvements to reduce overall manufacturing costs.

World Health Organization guidelines recommend emtricitabine, along with tenofovir disoproxil fumarate (TDF), as preferred components of first- and second-line HIV therapy. However, cost is currently a barrier to broadening access to regimens that include emtricitabine when compared to other regimens, including widely used lamivudine (3TC)-based regimens.

Recently the US FDA approved the two drugs combination FTC/ TDF as preventive treatment to people at high risk of contracting HIV. The agreement will therefore enable strides to produce high volume of & FTC/TDF/EFV based therapies thereby establishing sustainable   price parity to these alternative regimens.

Emtricitabine is marketed by Gilead under the brand name Emtriva, and a fixed-dose combination of emtricitabine and tenofovir disoproxil fumarate is made available under the brand name Truvada. Emtricitabine is also an essential component of the Quad, an investigational treatment that combines four Gilead medicines in a once-daily, single tablet regimen for the treatment of HIV.