Shares of Dr. Reddy’s Laboratories Ltd. are trading flat after touching a day’s high of Rs 6,795 on 3rd October. This follows the firm’s announcement of a partnership with Gilead Sciences to manufacture and commercialise the HIV drug Lenacapavir in India and 120 other countries.

The collaboration between Dr. Reddy’s and Gilead involves a royalty-free, non-exclusive voluntary licensing agreement for the HIV drug Lenacapavir.

Lenacapavir, approved by the US FDA, is used to treat HIV-1 infection in adults with multi-drug resistant HIV-1. It is also being studied for HIV prevention (PrEP), though it hasn’t yet received global approval for that use.

Gilead Sciences launched Lenacapavir (Sunlenca) in the US and Europe in 2022. Under the agreement, Dr. Reddy’s will handle technology transfer, studies, registration, and launch in the specified markets.

The deal allows Dr. Reddy’s to manufacture and commercialise Lenacapavir for PrEP in 120 countries, pending approval, focusing on low- and lower-middle-income countries with a high HIV burden, including India.

The stock has surged by 16.5% so far in 2024. The company’s market capitalisation is around Rs 113,024 crore.

At 11:25 AM, Dr Reddy’s shares were trading 0.43% higher at Rs 6,778.10 on NSE.

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