Shares of Glenmark Life Sciences soar on inking pact with Japanese pharma giant; watch out

About Agreement 

Glenmark Life Sciences (GLS) has signed a Master Supply Agreement (MSA) with a Japanese innovator pharmaceutical company with a global presence in Europe, the United States and Asia. Under the aegis of the Master Supply Agreement, Glenmark Life Sciences will manufacture API in the therapeutic area of urinary anti-spasmodic, to supply to the global innovator.

The company will leverage its expertise in API manufacturing to support the global pharmaceutical innovator’s initiative in the field of urinary anti-spasmodic therapeutics. As part of this collaboration, product portfolios of various affiliates of the global innovator may also be added in the future. The API for the finished formulation will be supplied to all major regulated markets such as the United States, Europe and Japan. The estimated commercial value of this project is expected to be around USD 5 million.

Share Price Movement 

Glenmark Life Sciences is currently trading at Rs 771.50, up by 14.15 points or 1.87% from its previous closing of Rs 757.35 on the BSE. The scrip opened at Rs 760 and has touched a high and low of Rs 776.10 and Rs 757.05, respectively. So far 11204 shares have been traded on the counter.

The BSE group ‘A’ stock of face value of Rs 2 has touched a 52-week high of Rs 776.10 and a 52-week low of Rs 369 and last one week high and low of the scrip stood at Rs 776.10 and Rs 738.50, respectively. The current market cap of the company is Rs 9,462.77 crore. The promoters holding in the company stood at 82.85%, while Institutions and Non-Institutions held 5.31% and 11.84%, respectively.

About the company 

Glenmark Life Sciences is a leading manufacturer of high-value active pharmaceutical ingredients (APIs) in chronic therapeutic areas like cardiovascular disease, central nervous system disease, pain management, and diabetes. The company has a strong market share in specialised APIs like Telmisartan, Atovaquone, Perindopril, Teneligliptin, Zonisamide, and Adapalene.

Glenmark is a research and development (R&D)-driven API manufacturer, focusing on new product development, complex molecules, cost improvement programs, process improvements, and oncology product development. The company operates four multi-purpose manufacturing facilities with an annual total installed capacity of 726.6 KL. The company’s management team has successfully integrated its businesses with various activities, creating value through organic growth, building brand recognition, and identifying new business opportunities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.