Glenmark’s share rises by 4% on Salix payment for crofelemer

Glenmark Pharmaceuticals has received $15 million, or about Rs 66.75 crore, from Salix Pharmaceuticals Inc, USA to upgrade its manufacturing facilities for crofelemer, a drug used to treat HIV induced diarrhoea.

Salix had earlier agreed to pay Glenmark USD 21.6 million as commitment fees in addition to the purchase price for the drug. Crofelemer has been in-licensed by Glenmark from Napo Pharmaceuticals, USA and the drug is currently undergoing Phase 3 clinical trials in the US.

Glenmark has rights to market crofelemer for diarrhoea indications in 140 countries. The company estimates the market for treating HIV-induced diarrhoea in these countries, at $80 million or Rs 356 crore.

Glenmark’s share was up by about 4% at Rs 342 on the BSE, at the time of posting, while the broad market was down by about 1%. Apart from today’s development, Glenmark had also announced on Monday that a molecule under development in its labs has cleared the first phase of human clinical trials.

Read the press release from Glenmark here.

Comments are closed.