Glenmark on a high on R&D policy push

DALAL STREET SPIKES

Reports that the new drug policy will extend tax benefits on pharma R&D till 2015, fuelled a surge in Glenmark Pharma. The scrip moved up 12.7 per cent to hit an yearly high of Rs 533 during intraday trade.

The stock witnessed huge volumes of 22 lakh shares against the two week average volumes of 3.9 lakh shares and settled at Rs 509.25, up 3.85 per cent.

The major objectives of the policy are to ensure availability of essential pharma products at reasonable prices and to encourage R&D in the sector.

Being a research focused player, Glenmark will benefit from the policy. During the September quarter, the company's sales increased 56 per cent to Rs 196.35 crore and net profits jumped 131 per cent to Rs 32.05 crore.