Sunday 23 December 2012

Glenmark Pharmaceuticals hits 52-week high on pact with Forest Laboratories

Glenmark Pharmaceuticals LtdBSE  surged over 2 per cent to hit its 52-week high of Rs 512.20 after the company said its subsidiary has signed an agreement with Forest Laboratories for worldwide collaboration on Novel Agents to treat chronic inflammatory conditions.

At 10:45 am, Glenmark Pharma was trading 2.4 per cent higher at Rs 511.60. It has hit a low of Rs 504 and a high of Rs 512.20 in trade today.

"Glenmark Pharmaceuticals S.A, a wholly owned subsidiary of Glenmark Pharmaceuticals has entered into agreement with Forest Laboratories Inc., on collaboration for the development of novel mPGES-1 inhibitors to treat chronic inflammatory conditions," Glenmark Pharmaceuticals said in a statement.

"Under the terms of the agreement, Forest will make a $6 million upfront payment to Glenmark and provide an additional $3 million to support the next phase of work," added the statement.

"This collaboration reinforces our strategy of partnering to achieve our goal of launching innovative technologies around the world," Glen Saldanha, Chairman and Managing Director at Glenmark Pharmaceuticals.

Both parties will work collaboratively to advance the program into the clinic. The collaboration between Glenmark and Forest will be managed by Joint Development Committee with equal representation from both companies.

Technical Check: Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services

The broke its recent high of Rs 499 and further made a high of Rs 511 with good volumes. Beside this stock is continuously making higher top and higher bottom.

Short term oscillators also trading positive as well as stock is trading above the short term averages. This depicts that the uptrend in the stock is far from over and it can rise towards 530 levels in the short term.

Traders can buy the stock from a short term perspective in the range of Rs 490-500, keeping a stop loss below Rs 475 and target Rs 530 upon initiation of the trade.

No comments:

Post a Comment