Glenmark Pharma jumps after unit files lawsuit in US

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Glenmark Pharmaceuticals jumped 4.31% to Rs 595.15 at 14:30 IST on BSE after the company said that its subsidiary filed a lawsuit in a US court seeking 180 days of exclusivity for its generic skin infections cream.

The announcement was made during trading hours today, 10 October 2013.

Meanwhile, the BSE Sensex was flat at 20,248.77.

On BSE, 1.02 lakh shares were traded in the counter compared with average volume of 45,244 shares in the past one quarter.

The stock hit a high of Rs 601.45 and a low of Rs 578.05 so far during the day. The stock hit a 52-week high of Rs 612 on 12 July 2013. The stock hit a 52-week low of Rs 393.25 on 29 October 2012.

The stock had outperformed the market over the past one month till 9 October 2013, rising 7.90% compared with the Sensex's 5.08% rise. The scrip had, however, underperformed the market in past one quarter, falling 2.56% as against Sensex's 4.17% rise.

The large-cap company has an equity capital of Rs 27.10 crore. Face value per share is Re 1.

Glenmark Pharmaceuticals announced that Glenmark Generics Inc., USA, the subsidiary of Glenmark Generics, filed a lawsuit in the Court of Chancery of the State of Delaware against Astellas Pharma Europe B.V., Astellas International, Triax Pharmaceuticals, LLC, Precision Dermatology, Inc., Onset Dermatologics, LLC, and Metacon Labs.

The lawsuit seeks to enforce Glenmark's exclusive royalty-bearing license agreement with Triax Pharmaceuticals, Astellas Pharma Europe BV and Astellas Pharma International By.

Under that agreement, Glenmark is entitled to 180 days of exclusivity with respect to its Hydrocortisone Butyrate cream, as it is the first generic company to file an abbreviated new drug application (ANDA) for the product.

Glenmark filed the lawsuit after learning that Metacon Labs had launched a generic equivalent of Locoid Lipocream. Glenmark is seeking, among other things, a temporary restraining order enjoining the sale, manufacturing or marketing of generic equivalents of Locoid Lipocream by any of the defendants in violation of Glenmark's exclusivity period.

Glenmark recently announced the United States Food and Drug Administration (US FDA) approved its ANDA for Hydrocortisone Butyrate cream USP, 0.1%, a generic version of Locoid Lipocream. Hydrocortisone Butyrate cream is indicated for the relief of the inflammatory and pruritic manifestations of corticosteroid-responsive dermatoses in adults and the treatment of mild to moderate atopic dermatitis in patients 3 months to 18 years of age.

According to IMS Health sales data for the 12 month period ending June 2013, Hydrocortisone Butyrate cream garnered annual sales of approximately $34 million, Glenmark Pharmaceuticals said in a statement.

Glenmark Pharmaceuticals' consolidated net profit surged 64.4% to Rs 128.68 crore on 19% growth in net sales to Rs 1237.88 crore in Q1 June 2013 over Q1 June 2012.

Glenmark Pharmaceuticals is a research-driven, global, integrated pharmaceutical company headquartered at Mumbai, India. It is a leading player in the discovery of new molecules both NCEs (new chemical entity) and NBEs (new biological entity).

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