Ranbaxy Labs, like Cadila healthcare and Cipla have signed a non-exclusive licensing agreement with Gilead Sciences, Inc. for manufacturing and distribution of Sofosbuvir mono, investigational Ledipasvir mono, the fixed-dose combination of Ledipasvir/Sofosbuvir with each other and the combination of Sofosbuvir or Ledipasvir with other active substances, for the treatment of hepatitis C.
 
Under this licensing agreement, Ranbaxy will be allowed to manufacture and market Sofosbuvir, Ledipasvir in 90-91 countries including its home markets India and South Africa under their own brand names. It also covers countries like Egypt which has a high incidence of Hepatitis C.
 
Sofosbuvir is a new antiviral drug which in combination therapy has shown to have higher cure rates. It represents a breakthrough in the treatment of hepatitis C. Sofosbuvir was approved by the U.S. Food and Drug Administration (FDA) in December 2013 and by the European Commission in January 2014. Sofosbuvir, in combination with other agents, offers a cure with a short-term course of treatment with few side effects and without the need for injections.
 
Commenting on the same, Sarabjit Kour Nangra, VP Research, IT, Angel Broking, said, ''While the exact financial details are not known, we believe the deal can potentially add around Rs. 2 billion to the company's full year sales. Thus we upgrade our company's FY2015 and FY2016 EPS by 4.9% and 9% respectively. However, on back of valuations, we remain neutral on the stock.''  

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