Shares of Glenmark Pharmaceuticals Ltd (GPL) hit a 52-week high today on reports that Glenmark Pharmaceuticals S.A., a subsidiary of GPL, has signed a deal with Forest Laboratories Inc of the US to develop inhibitors to treat chronic inflammatory conditions, including pain.
While Forest would make an upfront payment of $6 million to Glenmark, it would make an additional payment of $3 million for the next phase of work.
In a statement to the stock exchanges, GPL said that it had identified “clinical candidates” and was conducting pre-clinical studies and other development activities needed to “support the initiation of first-in-human dosing”. Forest would provide other future payments in FY2014 to back the advancement of ongoing mPGES-1 inhibitors programme. Forest would also have an exclusive option to secure licence rights to the programme on completion of Phase 1 of clinical trials.
Glenn Saldanha, Chairman and Managing Director, GPL, said the collaboration reinforced GPL's strategy of working with others to launch “innovative technologies” around the globe.
Marco Taglietti, Senior V-P of R&D and President of the Forest Research Institute, said that his company was looking for “innovative ways to expand its broad pipeline entering into early stage collaborations to secure access to novel products”.
The statement said that both partners would work to advance the programme into the clinic and it would be managed by a Joint Development Committee with both companies having equal representation.
The stock hit a fresh 52-week high of Rs 527.15 in intra-day trade today. The shares ended at Rs 519.70 (share face value Re 1), a gain of Rs 20.50 with a trading volume of 3.09 lakh shares against a two-week average of 1.45 lakh shares on the BSE.