Under this deal, Indoco will develop, manufacture and supply a number of products that have total yearly sales of $679 million at present.

Drug maker Indoco Remedies Ltd said on Monday it has signed a deal with US-based Watson Pharmaceuticals Inc. to develop generic products for the US market.

The shares of the Mumbai-based Indoco surged 4.95% to close at Rs340.30 on Monday on the Bombay Stock Exchange after the announcement.

Under this deal, which according to sector analysts is as important as similar deals in the past by big drug makers such as Dr Reddy’s Laboratories Ltd and Aurobindo Pharmaceuticals Ltd, Indoco will develop, manufacture and supply a number of products that have total yearly sales of $679 million (Rs3,143.77 crore) at present.

Indoco’s chairman and managing director Suresh G. Kare said in a media statement that it’s a milestone deal for Indoco as out-licensing technology to a company of Watson’s scale is a remarkable achievement.