Pharma stocks are trading strong led by Natco Pharma and JB Chemicals. According to a leading financial daily, Biocon has entered into an option agreement with Bristol-Myers Squibb Company for the latter's IN-105, a prandial oral insulin product candidate. Under the terms of the agreement, Bristol-Myers Squibb will have the right to exercise an option to obtain an exclusive worldwide license to the program. Biocon will conduct clinical studies to further characterise IN-105's clinical profile according to a pre-agreed development program up to the completion of Phase II. If Bristol-Myers Squibb exercises its option to license IN-105 following the successful completion of the Phase II trial, Bristol-Myers Squibb will assume full responsibility for the development program, including all development and commercialisation activities outside India. Biocon will receive a license fee in addition to potential regulatory and commercial milestone payments and royalties on commercial sales of IN-105 outside India. And, it will retain exclusive rights to IN-105 in India.
Auto stocks are trading in the red led by Eicher Motors and Tata Motors. According to a leading financial daily, financial services arm of Mahindra & Mahindra, M&M Financial Services (Mahindra Finance) raised Rs 8.67 bn via placement of equities to qualified institutional players (QIP). Mahindra Finance issued about 9.7 m shares at Rs 889 per share. This includes a premium of Rs 879 per share. As per Thursday's closing, this was at 10.5% discount to the prevailing market capitalisation. Mahindra Finance aims to use these funds for long term building of resources. It aims to enhance its Tier I capital base and make best use of available business opportunities.