Shares of Alkem Laboratories Ltd. closed nearly 3% down after reaching a day’s high of Rs 6,340.55 on 10th October, despite the company’s announcement of a licensing agreement with US-based Sonnet BioTherapeutics Holdings to develop, manufacture, and commercialise its drug candidate ‘SON-080’ for the treatment of diabetic peripheral neuropathy in India.

Under the licensing agreement, the company will handle the clinical development of ‘SON-080’ in India, with support from Sonnet, and manage both global and Indian regulatory filings.

Alkem has exclusive rights to develop, manufacture, and commercialise ‘SON-080’ in India.

‘SON-080’ is Sonnet’s proprietary version of “atexakin alfa,” which showed promising data in a phase 1b clinical trial.

The drug was well-tolerated, and results indicated a potential for rapid improvement in peripheral neuropathy symptoms, with lasting effects compared to placebo controls.

Akhilesh Sharma, President and Chief Medical Officer of Alkem, stated, “We believe ‘SON-080’ is a unique asset with promising potential to modify diabetic peripheral neuropathy, supported by studies showing nerve regeneration. Given the high prevalence of diabetic peripheral neuropathy in India, we see a strong need for drug development in this area and its potential value.”

The stock has surged almost 20% so far in 2024. As of now, the company’s market capitalisation stands at around Rs 73,378 crore.

At 3:30 PM, the shares of Alkem Labs closed 2.75% lower at Rs 6,121 on NSE.

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