Glenmark Pharma gets healthier after entering into agreement

Glenmark Pharmaceuticals rose 2.07% to Rs 706 at 11:20 IST on BSE after the company announced that it has entered into a development, license, manufacture and commercial supply agreement with Cyndea Pharma S.L.

The announcement was made before market hours today, 19 July 2017.

Meanwhile, the BSE Sensex was up 154.03 points, or 0.49%, to 31,865.02.

On the BSE, 50,716 shares were traded in the counter so far, compared with average daily volumes of 1.51 lakh shares in the past one quarter. The stock had hit a high of Rs 706.40 and a low of Rs 692 so far during the day. The stock had hit a 52-week high of Rs 993 on 1 November 2016. The stock had hit a 52-week low of Rs 600 on 29 May 2017.

The stock had outperformed the market over the past one month till 18 July 2017, gaining 8.34% compared with Sensex's 2.11% gains. The scrip had, however, underperformed the market in past one quarter, falling 22.48% as against Sensex's 8.16% rise. The scrip had also underperformed the market in past one year, declining 17.05% as against Sensex's 14.29% rise.

The large-cap company has equity capital of Rs 28.22 crore. Face value per share is Re 1.

Glenmark Pharmaceuticals announced that it has entered into a development, license, manufacture and commercial supply agreement with Cyndea Pharma S.L., granting exclusive rights to use their technology for developing generic, soft-gelatin capsule formulations of certain pharmaceutical products.

Under this agreement, Glenmark receives exclusive rights to the United States and Canada markets for these soft-gelatin formulations in exchange for sharing development costs and profits from future sales.

In addition, the agreement provides for the companies to add further soft-gelatin product candidates for development and commercialization, as new branded, softgelatin, capsule-based drug products become available in the marketplace.

Cyndea Pharma specializes in the development and manufacturing of Women's Health Care and niche products.

On a consolidated basis, Glenmark Pharmaceuticals' net profit rose 23.5% to Rs 183.76 crore on 10.2% rise in net sales to Rs 2424.41 crore in Q4 March 2017 over Q4 March 2016.

Glenmark Pharmaceuticals is a research-driven, global, integrated pharmaceutical organization headquartered at Mumbai, India. The company is a leading player in the discovery of new molecules both NCEs (new chemical entity) and NBEs (new biological entity). It has several molecules in various stages of clinical development and is primarily focused in the areas of oncology, dermatology and respiratory.

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