Glenmark Pharmaceuticals has spurted on news that its wholly owned subsidiary GlenmarkPharmaceuticals S.A (GPSA) has entered into an agreement with Sanofi-Aventis to grant the latter a license for the development and commercialization of novel agents to treat chronic pain, according to the Glenmark's filing with the BSE.
Glenmark is quoting at Rs 285, higher by 5.8%, on the BSE. The shares had opened at Rs 281, which also happened to be the day's low, and have touched a high of Rs 303 thus far. A total of 2.15 lakh shares have been traded thus far as against the two-week average of 1.80 lakh shares.
Under the terms of the agreement, Glenmark will receive an upfront payment of $20 million, besides development, regulatory and commercial milestone payments, totalling $325 million in all. Glenmark is also eligible to receive double-digit royalties on the sale of products commercialized under the license.
Sanofi-Aventis will have exclusive marketing rights for North America, European Union and Japan subject to Glenmark's right to co-promote the products in the United States and five Eastern European countries. Sanofi-Aventis will also have co-marketing rights in 10 other countries including Brazil, Russia and China. Glenmark will retain the exclusive rights in India and other countries.