New Delhi, May 17 (PTI) Shares of Shilpa Medicare on Monday zoomed nearly 12 per cent after the drug company said its arm has entered into a definitive agreement with Dr Reddy's Laboratories for manufacturing of Russian COVID-19 vaccine Sputnik V.

The stock jumped 11.90 per cent to close at Rs 509.55 on the BSE. During the day, it zoomed 14.15 per cent to Rs 519.80.

On the NSE, it rallied 11.90 per cent to close at Rs 509.80.

"The company, via its wholly-owned subsidiary Shilpa Biologicals Pvt Ltd (SBPL), has entered into a three-year definitive agreement with Dr Reddy's Laboratories for production-supply of the Sputnik V vaccine from its integrated biologics R&D cum manufacturing center at Dharwad, Karnataka," Shilpa Medicare said in a regulatory filing on Monday.

The targeted production of the dual vector Sputnik V for the first 12 months is 50 million doses (50 million of component 1 and 50 million of component 2), from the date of start of commercial production, the company added.

Shilpa Medicare said Dr Reddy's will facilitate the transfer of the sputnik technology to SBPL.

Under the agreement, SBPL will be responsible for the manufacture of the vaccine, while Dr Reddy's is responsible for the distribution/marketing of the vaccine in its marketing territories.

Shilpa Medicare said the companies are also exploring the option to manufacture Sputnik Light, a single-dose version of the vaccine in the near future.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)