Mumbai: Glenmark Pharmaceuticals spurted by over 19% in morning trade on the bourses on Monday after the company’s unit entered into an outlicensing agreement with Sanofi for development and commercialization of an anti-body used for the treatment of Crohn’s disease.
Cheering the move, the stock shot up by 19.54% to touch a one-month high of Rs327.80 on the Bombay Stock Exchange (BSE). Later, the scrip was trading at Rs309.75, up 12.96%.
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Investors flocked the company’s counter on the National Stock Exchange (NSE) as well, where the scrip zoomed up by 19.59% to touch an early peak of Rs327.80. Later, the shares were quoting at Rs309.50, up 12.91%.
On the volume front, over 53 lakh shares of the company were traded on the bourses within the first few minutes of trade.
In a regulatory filing to the stock exchange, Glenmark said it expects to receive an upfront payment of $613 million in addition to double-digit royalties on sales on granting the GBR 500 licence to Sanofi.
Under the deal, Sanofi will have exclusive marketing rights for North America, Europe, Japan, Argentina, China and Uruguay, it added. Sanofi and Glenmark will co-market the product in Russia, Brazil, Australia and New Zealand. Glenmark said it would retain exclusive marketing rights in India.
Glenmark said the transaction is expected to close in the coming month, subject to customary closing conditions.