Glenmark Pharma spurts on getting favorable verdict on arbitration claim against Napo Pharma

Glenmark Pharmaceuticals is currently trading at Rs 413.15, up by 7.95 points or 1.96% from its previous closing of Rs 405.20 on the BSE.

The scrip opened at Rs 414.05 and has touched a high and low of Rs 418.00 and Rs 411.25 respectively. So far 24713 shares were traded on the counter.

The BSE group 'A' stock of face value Re 1 has touched a 52 week high of Rs 426.85 on 06-Aug-2012 and a 52 week low of Rs 265.00 on 21-Dec-2011.

Last one week high and low of the scrip stood at Rs 419.95 and Rs 404.50 respectively. The current market cap of the company is Rs 11189.98 crore.

The promoters holding in the company stood at 48.26% while Institutions and Non-Institutions held 38.90% and 12.84% respectively.

The International Centre for Dispute Resolution (ICDR) has ruled in the favour of Glenmark Pharmaceuticals on the arbitration claim filed against the Napo Pharmaceuticals on August 8, 2012. ICDR has ruled that Glenmark’s exclusive rights to develop, commercialize and distribute Crofelmer through relief agencies into the 140 countries that comprise of the Glenmark’s territory. ICDR also has allotted Glenmark a span of two years to file for regulatory approval in the 140 countries in its territory, from the time Crofelmer is approved in India (on an indication basis by indication basis).

The International Centre for Dispute Resolution also found Napo Pharmaceuticals of breaching the collaboration agreement by disclosing information concerning the manufacture of Crofelmer to Aptuit Laurus and enjoining Napo from disclosing such confidential information to third parties and from purchasing or obtaining Crofelmer from Aptuit Laurus .

Glenmark filed arbitration claim against Napo, seeking among other things, a ruling that Glenmark’s exclusive rights to develop, commercialize and distribute Crofelmer in 140 countries for treatment of diarrheal disease includes the exclusive rights to distribute through relief agencies in these countries and an injection prohibiting Napo from sharing confidential information concerning the manufacture of Crofelmer.

Glenmark Pharmaceuticals has an exclusive license from Napo Pharmaceuticals, to distribute and commercialize Crofelmer in 140 emerging countries including India for indication related to HIV, used in acute and pediatric diarrhea. Crofelmer is a novel, first in class anti-diarrheal agent that has a physiological and different mechanism of action from traditional anti-diarrheal agencies.