The stock of drug maker Glenmark Pharma hit a new high of ₹749 on Wednesday after the company announced the discovery of a new biological molecule targeting cancer. The molecule named GBR 1302 is based on Glenmark's proprietary antibody technology platform and will target breast and ovarian cancer.

The company has initiated studies that are required to seek the US drug regulator — Food and Drug Administrator's (FDA) — permission to commence clinical studies. Glenmark expects to secure FDA approval (for initiating clinical studies) this fiscal.

According to the company, its innovative molecule GBR 1302 has demonstrated the ability to kill cancer cells more rapidly than other competing oncology drugs.

Though this is sentiment positive, the risk associated with successful development of the molecule is very high. Hence, while the benefit from this innovative drug is uncertain at this point in time the company will have to incur higher research spend, if the FDA clears the molecule for clinical studies.

Glenmark's stock has gained nearly 30 per cent in the last one month, thanks to the strong performance in the June quarter.

Healthy growth in India (21 per cent), Latin America (40 per cent) and rest of the world markets (21 per cent) more than compensated for the weakness in the US market (9 per cent).

Glenmark reported weak growth in the US market over the last few quarters due to slow drug approvals. However, with drug approvals in US likely to gain momentum over the next few quarters, the company expects growth in this geography to improve to mid teen levels in 2014-15.

Glenmark posted 44 per cent year-on-year growth in net profit to ₹ 185 crore in the June quarter.

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