Sun Pharma said the CSIR-IICT will get upfront and milestone payments totaling up to Rs 240 crore

Sun Pharmaceutical Industries has entered into a Rs 240-crore global licensing deal with the Indian Institute of Chemical Technology, Hyderabad under the Council of Scientific and Industrial Research Indian (CSIR) for developing new drugs. The company said the agreement, in which Sun Pharma will get an exclusive global license for patents, is part of its broader strategy to enhance its global specialty pipeline. The deal includes patents related to certain compounds with potential therapeutic activity across multiple indications in Sun Pharma's specialty focus areas, the Mumbai-based pharmaceuticals company said in a regulatory filing on Wednesday.

As part of the deal, the CSIR-Indian Institute of Chemical Technology (CSIR-IICT) will get upfront and milestone payments totaling up to Rs 240 crore, and royalties on net sales from commercialization of the products developed using these patents, Sun Pharma said.

Sun Pharma said it will be responsible for development, regulatory filings, manufacturing and commercialization of these potential products.

"This collaboration with CSIR-IICT for developing new drugs is part of our broader strategy for enhancing our global specialty pipeline," said Dilip Shanghvi, managing director, Sun Pharmaceutical Industries.

"CSIR-IICT is well-known for its high quality research and we are proud to be associated with them," he added.

Sun Pharma said a successful clinical development of these potential compounds may enable it to commercialize pharmaceutical products for various therapeutic indications over the long term.

Sun Pharma shares fell as much as 6.72 per cent during the session, before settling 4.69 per cent lower for the day at Rs 417.05 apiece on the BSE, underperforming the benchmark Sensex index which finished up 0.96 per cent.

Earlier this week, Sun Pharma reported a net profit of Rs. 1,387.48 crore in the quarter ended June 30, marking a year-on-year jump of 31.23 per cent.