The Hindu Business Line : Investment buying boosts Glenmark

THE Glenmark Pharma stock moved up today on bourses on mild investment buying doses. The gained by 5 per cent and the volumes went up by over three times on the NSE and BSE.

Of the total traded quantity on the NSE, 35.6 per cent was placed for delivery. Today's trading, however, did not suggest buying by overseas funds.

According to market persons, the stock's strong fundamentals and news on R&D front has been keeping the counter warm amid dull trading.

Mr Ketan Thacker felt that today's sudden rise in interest could be linked to announcement of results by the NYSE listed KV Pharma on this week. Glenmark has recently licensed 8 ANDAs to this US-based company. Apart from upfront payment, Glenmark is to get royalty from KV for a decade or more.

KV has reported a 63 per cent net income increase and record operating profits for the fourth quarter and the year to March 31, 2004. It expects to post a 10th consecutive record revenues and gross profit for 2004-05.

"This, for the discerning investors, is a pointer to Glenmark's this fiscal in the North American markets," he added.

According Mr Rajesh Agarwal of CD Equisearch, though currently exports of Glemark accounts for around 6 per cent of its revenue, in the coming years it may go up exponentially as research outsourcing becomes more prominent phenomenon for second and third rung Indian pharma companies.

Glenmark has developed a drug candidate for chronic obstructive pulmonary disorder and asthma. It is expected to enter phase I clinical trials in the UK next month. Mr Agarwal pointed out that by December 2005, the company was expected to file two more ANDAs.

Glenmark has recently though its wholly owned Brazilian subsidiary acquired Laboratories Klinger in that country. Glenmark has set its foot in Canada through supply of bulk drug to Apotex.

Glenmark Pharmaceuticals Inc, is its US outfit, which is spearheading its business moves in the North America.

More Stories on : Stock Markets | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Anand Rathi group opens office in Bangalore

ABN Amro MF lines up plain vanilla schemes

Bears prevail

Investment buying boosts Glenmark

Block deal spurs volumes

Outlook positive for BPCL, HCL Tech

Volumes tumble as dull trend continues

Plan to strengthen banking sector — 2nd action report to stock scam tabled in House