Glenmark Pharmaceuticals has plunged 5% to Rs 291 after Napo Pharmaceuticals, Inc. said it has terminated its Collaboration Agreement with the company.
Pursuant to the Collaboration Agreement dated July 2, 2005, Glenmark was to develop and commercialise the drug crofelemer in over 140 countries. The compound is a treatment for both acute and chronic watery diarrhea, life-threatening ailments that impacts millions of people across the world.
“Effective December 8, 2011, the termination was based on Glenmark's alleged breaches of the Collaboration Agreement between the two parties," Napo, which focuses on the development and commercialization of proprietary pharmaceuticals for the global marketplace, said in a press release.
A combined 231,120 shares have changed hands on the counter so far, against an average sub 100,000 shares that were traded daily in past two weeks on the NSE and BSE.