Glenmark surges 12% on BSE on Sanofi-Aventis licensing pact

MUMBAI: Shares of pharma firm Glenmark Pharmaceuticals today vaulted by 12 per cent on the Bombay Stock Exchange to touch a year-high of Rs 303.80 after the firm signed a licensing agreement with Sanofi-Aventis for developing drugs to treat chronic pain.

Glenmarks's subsidiary, Glenmark Pharmaceuticals SA, has entered into an agreement with Sanofi-Aventis, under which it has granted a licence to the latter for the development and commercialisation of novel agents to treat chronic pain. Glenmark would get an upfront payment of USD 20 million (about Rs 89 crore) for granting the licence.

Reacting to the development, shares of Glenmark Pharmaceuticals surged 12.58 per cent to touch a 52-week high of Rs 303.80 on the BSE.

On the National Stock Exchange (NSE) too, the stock soared 12.06 per cent to a high of Rs 302.40.

A total of 18.34 lakh shares of Glenmark Pharmaceuticals changed hands on both the bourses in early trade.

Under the terms of the agreement, Glenmark will receive an upfront payment of USD 20 million, as well as development, regulatory and commercial milestone payments.

In addition, Glenmark is eligible to receive royalties on sales of products commercialised under the licence.