Mumbai: Shares of drug maker Glenmark Pharmaceuticals Ltd rose as much as 3.4% in intra-day trade as its US partner Salix Pharma Inc. received regulatory approval for selling crofelemer, a new drug for treating diarrhoea in HIV/ Aids patients.
Glenmark will be manufacturing and supplying the drug to Salix for the US market.
Crofelemer has been in-licensed from Napo by Salix and Glenmark, which have the right to commercially manufacture and develop the drug in various markets, brokerage Edelweiss Securities said in a Tuesday report.
Salix has paid $15 million to Glenmark as part of the manufacturing and supply agreement, and the Indian drug maker expects at least $15 million annually in revenue from the sales of crofelemer in the US for the next few years.
The Glenmark stock also had a boost recently after the company’s wholly owned unit signed an agreement with Forest Laboratories Inc. on 24 December to collaborate for the development of mPGES-1 inhibitors to treat chronic inflammatory conditions.
The US-based Forest Lab will pay $6 million upfront to Glenmark and an additional $3 million to support the next phase of development. Forest will make other payments in financial year 2013-14 to support the advancement of the mPGES-1 inhibitors program.
On Tuesday, Glenmark shares, which had jumped 81.5% in 2012, gained 2.3% to close at Rs539.75 on BSE Ltd. The 30-share benchmark Sensex climbed 0.8% to 19,580.81 points.