Dr. Reddy’s Labs Hits Record High with Malaria Drug Pact with Kainomyx
Shares of Dr Reddy’s Laboratories hit an all-time high of Rs 7,101 per share on the BSE, rising 1.95 per cent on intraday levels on Wednesday. This came after the company announced its potential partnership with its subsidiary Aurigene Pharmaceutical and US-based Kainomyx for the development of an anti-malaria drug.
The Hyderabad-based company and its contract research and drug manufacturing organization (CRDMO) arm Aurigene have signed a non-binding memorandum of understanding (MoU) with Kainomyx, Inc., a US-based company with a proprietary platform targeting parasite cytoskeletal proteins.
This collaboration is aimed at developing and commercializing an affordable antimalarial drug for markets in the US, Europe and low- to middle-income countries. The MoU is subject to the signing of a definitive agreement, the company said in a statement.
Under the MoU, Kainomyx will lead the technical strategy for drug discovery and clinical development, Aurigene will focus on creating cost-effective and scalable drug chemistries, and Dr. Reddy’s will contribute its expertise in regulatory affairs and market access.
Malaria remains a major health problem, particularly in low-income countries. The World Health Organization (WHO) reported 249 million cases of malaria and 608,000 malaria-related deaths in 2022.
James Spudich, Executive Chairman of Kainomyx, emphasized the need for new malaria treatments due to growing drug resistance. He noted, “Our extensive research on cytoskeletal proteins offers a promising approach to address this critical challenge.”
Dr Reddy’s Laboratories reported a marginal decline in profit after tax (PAT) of 0.90 per cent year-on-year at Rs 1,392.4 crore for the first quarter of the current financial year (Q1FY25).
On the other hand, revenue from operations grew 13.88 percent YoY to Rs 6,757.9 crore. Sequentially, the company saw an 8.18 percent increase in revenue and a 6.31 percent increase in PAT.
At 10:54 AM; the company’s shares were trading 1.17 per cent higher at Rs 7,046.45 per share on the BSE. In comparison, the BSE Sensex was almost flat, down 0.05 per cent at 80,759 levels.
First publication: Aug 21, 2024 | 11:05 AM IST