The Hindu Business Line : Glenmark up on milestone payment talk

THE Glenmark Pharmaceuticals stock is in the buzz on market talk that it would get first milestone payment for its anti-diabetic drug research. On Thursday, the counter attracted a traded quantity of around 3 lakh shares on the BSE and finished at Rs 268.65. On Wednesday, CLSA is understood to have bought around 15 lakh shares for its overseas investors, largely from Japan.

For the research in anti-diabetic (type II) molecule, for which the company is entering the pre-clinical trial stage shortly, the market may be even bigger than its first research deals for anti-asthma and chronic obstructive pulmonary disorder molecules, analysts feel.

The company may start off with a modest deal and upfront payment in the current fiscal in this field, an industry insider observed. The deals are meant for specific geographical markets and milestone payments are generally made in a phased manner as the research advances over a few years. Market sources pointed out that the milestone payments are boosting the revenues and earnings of the company at an accelerated pace since last fiscal and are likely to continue.

Jumps on acquisition hopes

Is Rajratan Global Wires, formerly Rajratan Gustav Wool, in the process of acquiring its competitor located in Pune? Dalal Street whispers say so. Though no confirmation was available from the company, industry experts said that it may soon get a strong foothold in the export market.

The company is the country's largest producer of beaded wires, an input for tyre manufacturing. Its product specifications are said to be under test approval by Japanese tyre manufacturer Sumitomo. The stock inflated to Rs 123.25, on a strong opening, but closed on Thursday at Rs 120.90 with a traded quantity double the two-week average on the BSE.

Betting on exports

The counter of Titan Biotech, a vaccine producing outfit, is witnessing noticeable volumes in the past few days on the stock market. Dealers said that the small company (equity base of Rs 5.23 crore and 04-05 sales at Rs 5.54 crore) has attracted a section of investors' imagination on its export potential and a possibility of being an acquisition target. The stock on Thursday closed at Rs 19.20, up 1.43 per cent. With improvement in the bottomline, the stock appears to be consolidating at the current level, market persons feel.

Jayanta Mallick

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