In early trade while Cipla shares rallied over 6% to Rs. 605, Jubilant Life Sciences shares were locked in 5% upper circuit at Rs. 428.55.
On Tuesday, the two companies inked non-exclusive voluntary licensing agreements with Gilead Sciences, the US drug maker, for manufacturing remdesivir, a potential drug for treating coronavirus.
We would be ready to launch remdesivir shortly after required regulatory approvals," said Jubilant Life Sciences. Also, the company said it is keeping a close eye on the range of clinical trials that are being carried out and regulatory approvals.
Other companies including the likes of Mylan, Hetero Lab have also entered into a commercial agreement with Gilead Sciences for manufacturing and distribution of the drug in 127 nations.
Hetero Labs, Mylan and Pakistani firm Ferozsons Laboratories have also signed commercial agreement with Gilead to manufacture and distribute the drug in 127 countries.
Remdesivir developed by Gilead Sciences is an investigational broad spectrum anti-viral. Currently the drug is being tested as a potential treatment for coronavirus infection.
In afternoon trade, Cipla shares pared all their gains and was trading lower by 0.04% at Rs. 569.9