Glenmark Pharmaceuticals has rallied over 5% to Rs 547, its highest level since September 2008, with heavy volumes on the NSE. The stock opened at Rs 522 and has seen a combined 1.28 million shares changing hands on the counter so far compared to less than one million shares that were traded daily in past two weeks.
The pharma stock has outperformed the market by surging 10% in past two trading sessions compared to 1% rise in benchmark Sensex after the company informed the stock exchanges that it has entered into an agreement with Forest Laboratories Inc (Forest Labs) to develop novel mPGES-1 inhibitors to treat chronic inflammatory conditions, including pain.
Under the terms of agreement, Forest Labs will make a $6-million up-front payment and provide an additional $3 million to support the next phase of work. Forest Labs will make other future payments in FY2014 to support the ongoing mPGES-1 inhibitors programme.
Analyst at Sharekhan recommended a BUY on the stock with the revised target price of Rs 600 saying that it an important development for the company having positive repercussions in the long term.