Dr Reddy's Laboratories extends gain, shares jump over 4%

Shares of Dr Reddy's Laboratories extended their gains and rose by over 4 per cent on Thursday as Russia's sovereign wealth fund RDIF will supply 100 million (10 crore) doses of Sputnik V Covid-19 vaccine to the drug maker upon getting regulatory approval in India.

The stock gained 4.21 per cent to close at Rs 4,826.60 on the BSE. During the day, it jumped 4.60 per cent to a record high of Rs 4,845.

On the NSE, the scrip rose 4.30 per cent to close at Rs 4,827.25.

Shares of Dr Reddy's Laboratories had gained over 4 per cent on Wednesday also.

The Russian Direct Investment Fund (RDIF) and Dr Reddy's Laboratories have agreed to cooperate on clinical trials and distribution of Sputnik V vaccine in India, RDIF and Dr Reddy's said in a joint statement.

On August 11, the Sputnik V vaccine developed by the Gamaleya National Research Institute of Epidemiology and Microbiology was registered by the Ministry of Health of Russia and became the world's first registered vaccine against Covid-19 based on the human adenoviral vectors platform.

Deliveries could potentially begin in late 2020 subject to completion of successful trials and registration of the vaccine by regulatory authorities in India, the statement added.

It, however, did not provide any financial details of the agreement between the partners.