The share price of Shilpa Medicare rallied over 13 percent in early trade on Monday after the company announced a partnership with Dr Reddy's Laboratories for the production of Sputnik V vaccine.

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Shilpa Biologicals Pvt Ltd (SBPL), a wholly-owned subsidiary of Shilpa Medicare, has entered into a three-year definitive agreement with Dr Reddy's Laboratories Ltd (DRL) for the production-supply of the Sputnik V vaccine from its integrated biologics R&D cum manufacturing centre at Dharwad, Karnataka.

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, Shilpa Medicare said in a regulatory filing on Monday.

DRL has partnered with Russia's RDIF for clinical development of the vaccine and has distribution rights in geographies including India.

"DRL will facilitate the transfer of the sputnik technology to SBPL. Under the agreement, SBPL will be responsible for the manufacture of the vaccine, while DRL is responsible for distribution/marketing of the vaccine in its marketing territories," the release said.

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

At 9:35 am, the shares of Shilpa Medicare were trading 9.27 percent higher at Rs 497.55 apiece on the BSE.

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