Wockhardt is having a pretty volatile day. Opening higher at Rs.439.60, the stock rose to an intraday high at Rs.464.85 but profit booking at this level, pushed the stock down to the red at Rs.426.30 and is now trading at Rs.435.
The stock price reacted positively to the news that its subsidiary, Wockhardt Bio AG, has partnered with China-based Jemincare, used in treatment of community-acquired bacterial pneumonia and other respiratory tract infections.
Under the terms of the definitive agreement, Jemincare will be responsible for exclusive development and commercialization 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.
Wockhardt would transfer the manufacturing technology to Jemincare at mutually agreed time.