Wockhardt share price rallied over six percent in early trade deals on Thursday after the company announced a partnership with China-based Jemincare for novel respiratory antibiotic Nafithromycin.

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“Wockhardt Bio AG – a subsidiary of Wockhardt and Jiangxi Jemincare Group Company, China have partnered for Wockhardt’s novel patented antibiotic WCK 4873 in People’s Republic of China, Hong Kong, Macau and Taiwan for the treatment of community-acquired bacterial pneumonia and other respiratory tract infections,” Wockhardt said in a release.

Under the terms of the definitive agreement, Jemincare will be responsible for exclusive development and commercialisation of the Nafithromycin in the select markets.

Wockhardt will receive an upfront payment and will be eligible for regulatory-linked milestone payments. Further, Wockhardt would supply the product to Jemincare and will receive royalties on net sales, the release added.

Wockhardt would transfer the manufacturing technology to Jemincare at a mutually agreed time.

“Wockhardt has been at the forefront in the fight against Anti-Microbial Resistance (AMR) which has been identified as one of the top threats by WHO. Our novel drug discovery program of around 20 years has yielded a rich pipeline of products which are at different stages of commercialisation,” said Habil Khorakiwala, Founder Chairman of Wockhardt Group.

Wockhardt will continue to develop Nafithromycin for other markets including India where Phase III clinical study is ongoing.

The shares of Wockhardt, however, failed to hold gains and were trading 1.65 percent lower at Rs 429.40 apiece on the BSE at 11:50 IST.

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