Shares of Shilpa Medicare soared 10% on Monday after the Company via its wholly owned subsidiary Shilpa Biologicals (SBPL), has entered into a three-year definitive agreement with Dr. Reddy's Laboratories (DRL) for 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.

DRL has partnered with HVIRDIF 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 manufacture of the vaccine, while DRL is responsible for distribution/marketing of the vaccine in its marketing territories.

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

The company views Biologics as a strategic growth area and has made significant investments in setting up a High end, Flexible Biologics facility in Dharwad to cater to the requirements of the fast growing biologics field, that include the adenoviral, subunit & DNA vaccines, Monoclonal antibodies & fusion proteins.

Shares of Shilpa Medicare  are trading at Rs 500.45, up Rs 45.1, or 9.90%  at the Bombay Stock Exchange (BSE) on Monday at 10:29 a.m.

The scrip has touched an intra-day high of Rs 516.95 and low of Rs 462. The total volume of shares traded at the BSE is 151,228.

Currently, the stock is trading down  27.73% from its 52-week high of Rs 692.45  and above 57.85% over the 52-week low of Rs 317.05.