Strides Arcolab shares surge on GSK-Aspen deal

MUMBAI, July 23 (Reuters) - Shares in Strides Arcolab Ltd (STAR.BO: Quote, Profile, Research) surged 22 percent on Wednesday after a generics drugs deal was struck between GlaxoSmithKline (GSK.L: Quote, Profile, Research) and South Africa's Aspen (APNJ.J: Quote, Profile, Research) involving a joint venture with Strides.

Under the deal, Aspen will license intellectual property and supply finished dosages through Aspen Group companies including Onco Therapies (OTL), an equal joint venture between Strides and Aspen, the South African firm said in a statement.

For detailed story on the GlaxoSmithKline deal with Aspen doubleclick on [ID:nL23881406]

Aspen and OTL will recover intellectual property development costs besides sharing profits with GSK when the drugs are commercialized, the statement added.

The first of the products is expected to be launched in 2010.

The licensing and supply agreement is for 95 emerging markets excluding sub-Saharan Africa and India, Strides Arcolab said in a separate statement.

Strides shares are trading 18 percent higher at 173.50 rupees in a firm Mumbai market. (Reporting by Bharghavi Nagaraju; editing by Rosemary Arackaparambil)