Shares Sun Pharma rose as much as 4.69 per cent to hit an intraday high of Rs 434.20 on the BSE.

Shares of Dilip Shanghvi-led Sun Pharma rose as much as 4.69 per cent to hit an intraday high of Rs 434.20 on the BSE after it informed exchanges, after market hours, on Friday that it has signed a licensing agreement with China Medical System Holdings for generic products in Mainland China. On the National Stock Exchange, Sun Pharma share price rose as much as 4.7 per cent to hit high of Rs 434.20 compared with its Friday's closing price of Rs 414.70.

One of the subsidiaries of Sun Pharma has entered into an agreement with China Medical System Holdings to develop and commercialize seven generic products in Mainland China.

"The collaboration with CMS now covers eight generic products including the seven products referred above. The total addressable market size for all these eight products is about $1 billion (as per recent IQVIA data) in Mainland China. The initial term of the agreement shall be 20 years from the first commercial sale of the respective products in Mainland China and may be extended for additional three years' as per mutual agreement of the two parties," the Mumbai-based drugmaker said in an exchange filing.

"This collaboration gives us entry into the Chinese generic pharmaceutical market. We see lot of potential in China for both, our generics and speciality portfolio. With more than 65 per cent generics penetration, China represents a significant opportunity for generic pharmaceutical companies," said Dilip Shanghvi, managing director, Sun Pharma.

In June 2019, Sun Pharma had announced collaboration with CMS on two speciality products, Tildrakizumab and Cyclosporine A 0.09% (CsA) eye drops for the Greater China market, Sun Pharma added.

Sun Pharma shares ended 2.66 per cent higher at Rs 425.80 outperforming the Sensex which rose 0.14 per cent.