Glenmark Pharma gains after entering into agreement with Celon to market generic drug in Europe

Glenmark Pharmaceuticals rose 1.21% to Rs 1,032 at 15:20 IST on BSE after its European arm entered into a strategic development & licensing agreement with Celon, Poland for generic Seretide Accuhaler in Europe.

The company made the announcement during market hours today, 23 October 2015.

Meanwhile, the BSE Sensex was up 191.96 points, or 0.7%, to 27,479.62.

On BSE, so far 48,411 shares were traded in the counter, compared with an average volume of 91,752 shares in the past two weeks.

The stock hit a high of Rs 1,045 and a low of Rs 1,020.10 so far during the day. The stock hit a record high of Rs 1,261.95 on 21 August 2015. The stock hit a 52-week low of Rs 701.55 on 28 October 2014.

 

Glenmark Pharmaceuticals said that Glenmark Pharmaceuticals Europe has entered into a strategic development & licensing agreement with Celon Pharma S.A. (Celon), an integrated pharmaceutical company to develop and market a generic version of GlaxoSmithKline's Seretide Accuhaler product - Fluticasone /Salmeterol dry powder Inhaler in Europe upon commercialization. As per the terms of the agreement; Glenmark has obtained semi-exclusive marketing & distribution rights of the product across 15 European countries including Great Britain, Germany, Belgium, the Netherlands, Italy, Sweden, Norway and Romania among others. Celon on the other hand, shall receive an upfront payment; followed by certain milestone payments during various stages of the product's development from Glenmark; including royalties on sales. The distribution agreement was concluded for a period of 10 years, with an option of a two-year extension.

The Fluticasone/Salmeterol dry powder Inhaler is a combination product for the treatment of chronic obstructive pulmonary disease (COPD). Seretide marketed by GlaxoSmithKline is among the top 3 pharmaceutical brands in Europe with sales of $2.24 billion in Europe as per IMS.

On a consolidated basis, Glenmark Pharmaceuticals' net profit fell 3.6% to Rs 178.27 crore on 10.9% increase in total income to Rs 1653.11 crore in Q1 June 2015 over Q1 June 2014.

Glenmark Pharmaceuticals is a research-driven, global, integrated pharmaceutical company headquartered at Mumbai, India. Glenmark has several molecules in various stages of clinical development and is primarily focused in the areas of inflammation and pain management. The company has a significant presence in branded generics markets across emerging economies including India.

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